Saw the story of Bank of America’s “accounting error” a few days ago and muttered something to myself about how they’ll just get away with this accounting fraud just like they’re getting away with the foreclosure fraud. After all, it’s kinda hard to misplace $4 billion (except that it’s all fake and only exists as binary code on hard drives–i.e. “electronic cash that did not exist before”), just like it’s kinda hard to come up with original notes with endorsements after you’ve either destroyed them or just never done the endorsements at all.
Fortunately though, Charles Foti–the former attorney general of Louisiana- isn’t as partial to muttering as I am and just so happens to have a high-powered law firm at his disposal, which has decided to look into this $4 billion “oopsie”:
NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Bank of America Corporation (NYSE: BAC).
On April 28, 2014, Bank of America announced a $4 billion downward revision of the Company’s previously disclosed regulatory capital due to an accounting error related to the Company’s 2009 acquisition of Merrill Lynch & Co. The Company further announced that the Federal Reserve Board has required the Company to resubmit its data templates and requested capital actions and directed that the Company suspend its plan to buy back more shares and raise its dividend. The Federal Reserve Board stated that, “Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors.”
KSF’s investigation is focusing on whether Bank of America and/or its officers and directors violated state or federal securities laws.
NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Bank of America Corporation (NYSE: BAC).
On April 28, 2014, Bank of America announced a $4 billion downward revision of the Company’s previously disclosed regulatory capital due to an accounting error related to the Company’s 2009 acquisition of Merrill Lynch & Co. The Company further announced that the Federal Reserve Board has required the Company to resubmit its data templates and requested capital actions and directed that the Company suspend its plan to buy back more shares and raise its dividend. The Federal Reserve Board stated that, “Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors.”
KSF’s investigation is focusing on whether Bank of America and/or its officers and directors violated state or federal securities laws.“
I can save Mr. Foti and company some time on that last point: yes, they have violated securities laws, particularly in regard to “mortgage-backed” securities. For example:
“Bank of America has agreed to pay $9.5 billion to the Federal Housing Finance Agency (FHFA) to resolve all residential mortgage-backed securities (RMBS) issues. It’s the largest settlement to a single regulator over misleading mortgage sales.
Under the terms of the settlement, Bank of America will make cash payments of about $6.3 billion to Fannie Mae and Freddie Mac. In addition, the bank will repurchase soured RMBS at fair market value, which is approximately $3.2 billion, says a bank statement.
The FHFA settlement resolves four lawsuits filed in September 2011 against Bank of America and its subsidiaries Countrywide and Merrill Lynch. The suits revolved around the false representation of mortgage loans and the underlying standards.”
Happy hunting, Mr. Foti! Hope you bag some big game…
NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Bank of America Corporation (NYSE: BAC).
On April 28, 2014, Bank of America announced a $4 billion downward revision of the Company’s previously disclosed regulatory capital due to an accounting error related to the Company’s 2009 acquisition of Merrill Lynch & Co. The Company further announced that the Federal Reserve Board has required the Company to resubmit its data templates and requested capital actions and directed that the Company suspend its plan to buy back more shares and raise its dividend. The Federal Reserve Board stated that, “Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors.”
KSF’s investigation is focusing on whether Bank of America and/or its officers and directors violated state or federal securities laws.
NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Bank of America Corporation (NYSE: BAC).
On April 28, 2014, Bank of America announced a $4 billion downward revision of the Company’s previously disclosed regulatory capital due to an accounting error related to the Company’s 2009 acquisition of Merrill Lynch & Co. The Company further announced that the Federal Reserve Board has required the Company to resubmit its data templates and requested capital actions and directed that the Company suspend its plan to buy back more shares and raise its dividend. The Federal Reserve Board stated that, “Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors.”
KSF’s investigation is focusing on whether Bank of America and/or its officers and directors violated state or federal securities laws.
LIBERTY ROAD MEDIA 