Bank of America says it may face civil charges

Bank Of America Building

Bank of America said regulators and government agencies have advised it of their intent to recommend filing civil actions related to mortgage-backed securities.

According to a regulatory filing, The Justice Department and SEC have informed the bank that they intend to file civil charges related to one or two jumbo prime securitizations. The SEC is also considering civil charges against Merrill Lynch arising from its CDO investigation.

Additionally, the New York Attorney General's office has said they intend to recommend filing an action against Merrill Lynch arising from their residential mortgage-backed securities investigation.

Bank of America said in the filing that it "has received a number of subpoenas and other requests for information from regulators and governmental authorities regarding MBS and other mortgage-related matters, including inquiries, investigations and potential proceedings related to a number of transactions involving the corporation's underwriting and issuance of MBS and its participation in certain CDO offerings."

Bank of America had no comment on the potential civil charges.

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