Bank of America

Bank of America/Banc of America Securities/Banc of America Investment ServicesBank of America was founded in 1904. Already one of the world’s largest banks, Bank of America’s recent acquisition of Merrill Lynch for approximately $44 billion makes Bank of America even bigger and stronger. That acquisition is supposed to close in early 2009. Bank of America provides brokerage, investment management, and other investment services through its subsidiaries Banc of America Securities LLC and Banc of America Investment Services, Inc. Through its brokerage and investment management subsidiaries, Bank of America has more than $500 billion in client assets under management.

Additional Information

Bank of America Pays $515 Million for Mutual Fund Late Trading

On the eve of their merger, Bank of America and FleetBoston Financial, paid a total $515 million to settle claims of “late trading” of mutual-funds as part of the largest mutual fund scandal in history. The firms also agreed to reduce the fees investors pay by $160 million over a 5 year period, federal and New York state authorities said. Eight members of the board of directors of Nations Funds, Bank of America’s group of mutual funds, also will be required to resign their positions within a year for their alleged role in allowing the trading violations. “These directors clearly failed to protect the interest of investors,” said New York Attorney General Eliot Spitzer. “They acknowledged the problem of market timing, but then allowed a favored client to engage in that harmful practice. Allegations included that traders at the Bank of America’s securities subsidiary assisted select clients to illegally trade in mutual funds after-hours at stale prices, or “late trading” at the expense of ordinary investors.

Banc of America Ordered to Pay Customer $80,000

An NASD arbitration panel ordered Banc of America Investment Services to pay an investor $80,000 to compensate him for damages that he suffered as a result of Banc of America’s misconduct. Claimant alleged breach of contract, breach of fiduciary duty, fraud, negligent supervision, negligence, and gross negligence relating to a forged margin agreement and unsuitable trades.

If you suffered investments losses, please contact us or communicate with a Dimond Kaplan & Rothstein, P.A. attorney at 888-578-6255 or jkaplan@dkrpa.com for a free case evaluation.