BofA To Settle SEC Fraud Suit Over $850M In RMBS

Law360, Los Angeles (August 22, 2014, 9:50 PM ET) — Bank of America Corp. and subsidiary Merrill Lynch will settle a lawsuit brought by the U.S. Securities and Exchange Commission alleging the bank defrauded investors in the sale of $850 million in residential mortgage-backed securities, according to a motion for a stay filed in North Carolina federal court on Friday.

The bank and the SEC asked the court for a stay of proceedings while they finalize the deal, according to court records. Terms of the settlement were not immediately disclosed. The parties set a 60-day deadline to…


Source: Law360

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