Bank of America Statement on Resolutions With State and Federal Agencies Over Municipal Bidding Practices
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CHARLOTTE, N.C., Dec 07, 2010 (BUSINESS WIRE) -- Bank of America Corporation today released the following statement regarding resolutions with state and federal regulators in connection with municipal derivatives bidding practices from 1998 to 2003.
"As previously disclosed, Bank of America was granted amnesty in 2007 by the Department of Justice for self-reporting evidence of possible wrongdoing before the industrywide investigation of these practices began and for continuing to cooperate with the Justice Department's investigation.
"The regulatory agencies recognized that the Bank stepped forward and reported evidence of improper bidding practices in the industry, cooperated extensively and assisted investigations by the Justice Department, the Securities and Exchange Commission and other law enforcement and regulatory entities. The Bank also took appropriate personnel actions and other measures to ensure that these or similar practices would not occur again.
"As has been widely reported in the press, Bank of America is one of a number of financial institutions that are under investigation, but Bank of America was the first and only company to self-report and it was our company that the Justice Department has cited as being particularly helpful in its investigation.
"Bank of America is pleased to put this matter behind it, and has already voluntarily undertaken numerous remediation efforts. Bank of America continues to cooperate with all agencies on their inquiries into practices by various companies participating in the municipal derivatives markets during this time period.
"Consistent with our commitment since self-reporting these matters, Bank of America will make a restitution payment of $25 million to the IRS, and through its resolutions with the OCC, SEC, and a Working Group of State Attorneys General, the Bank will make payments of $9.2 million, $36.1 million, and $62.5 million, respectively, to the counterparties affected by the practices. The Bank will also make a $4.5 million payment to the State Attorneys General for costs related to, among other things, their investigation in this matter."
Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,900 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
SOURCE: Bank of America Corporation
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