Thursday, August 1, 2013

Bank of America faces new federal civil charges

New legal troubles aren't over yet for Bank of America. The Charlotte bank faces more federal civil charges -- this time by the U.S. Department of Justice over the bank's securitization of jumbo mortgages, the bank disclosed in a quarterly filing Thursday.

The Securities and Exchange Commission has told the bank it plans to file charges as well. These come on top of a New York attorney general investigation into mortgage-backed securities that was already disclosed.

The bank's response: "The Corporation has been in active discussions with senior staff of each government entity in connection with the respective investigations and to explain why the threatened civil charges are not appropriate."

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