BAC could face three more MBS investigations
According to Bloomberg, Bank of America (BAC) could face three more Justice Department civil probes over mortgage-backed securities. Most recently, attorneys sued the lender over an $850-million mortgage bond.
U.S. attorneys offices in Georgia and California are examining potential violations tied to Countrywide Financial Corp., the subprime lender Bank of America bought in 2008, said the people, who asked not to be identified because the inquiries aren’t public. U.S. attorneys in New Jersey are looking into deals involving Merrill Lynch & Co., purchased by the firm in 2009, the people said.
If claims are brought, Bank of America would join JPMorgan Chase & Co. dealing with government demands that it resolve liabilities inherited after buying weakened rivals at the government’s urging during the credit crisis.