Bank of America Corp.’s lawsuit against the Federal Deposit Insurance Corp. against the Federal Deposit Insurance Corp. for $1.7 billion in client losses was revived after the agency said that a bank at the center of the Taylor Bean scandal may have have enough assets to pay the claims.
Bank of America Corp., the second- largest U.S. lender, agreed to an $8 million fine and returned almost $90 million to clients of its Merrill Lynch unit who were improperly charged fees over six years.
Just before dawn on a cool June morning, six submachine-gun-wielding federal agents charged into Alexandre Caiado’s Sao Paulo apartment. After arresting him, they hustled Caiado into a pickup truck for a 30-block drive to Merrill Lynch & Co. ’s office, where he had been working as a private banker for two years.
Bank of America Corp.’s Merrill Lynch unit was ordered by a Brazilian court to pay Alexandre Caiado 150,000 reais ($76,500) to compensate the former banker for five days he spent in jail over allegations tied to his work at the company.
In early 2007, with subprime-mortgage defaults soaring, Wing F. Chau teamed with Merrill Lynch & Co. to create a $300 million pool of assets that shared a name with the main character in The Matrix movies who discovers reality isn’t what it seems.
A former Bank of America Corp. senior vice president, who cooperated with prosecutors probing a conspiracy to rig bids in the $3.7 trillion municipal bond market, won’t go to jail for his role in the scheme.