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.
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.
Detroit officials gave Bank of America Corp. and UBS AG until the end of today to say how much they would accept to cancel interest-rate swaps that cost city taxpayers about $4 million a month or face a possible lawsuit, a person familiar with the talks said.
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 Detroit bankruptcy judge rejected as too costly a proposal by the city to pay UBS AG and Bank of America Corp. about $165 million to end interest-rate swaps that have cost taxpayers $202 million since 2009.