Wednesday, August 28, 2013

Merrill Lynch settling racial bias case

The brokerage will pay $160 million to end an eight-year-old case alleging that black brokers weren't given training and support by their managers and treated unfairly by co-workers, The New York Times reports. At the time, only one in 75 brokers at Merrill Lynch were black. Bank of America, which didn't yet own the company when the suit was filed, also says it will work with current black employees to gather advice on how to help minority brokers succeed.

'HUSTLE' CASE HEADED TOWARD TRIAL: A judge didn't agree with Bank of America that a federal government suit alleging the bank recklessly sold bad loans to Fannie Mae and Freddie Mac should be thrown out, Reuters reports. The Justice Department brought the suit in October, and covers actions taken at Countrywide, as a Bank of America spokesman points out. Essentially, the billion-dollar suit says the bank churned out as many mortgages as it could to sell to the mortgage giants while disregarding processes set up to make sure they were good loans. A trial is set for Sept. 23.

****This is a preview of The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****