BofA faces three more Justice Department mortgage bond probes

Bank Of America Building

Bank of America, sued by U.S. attorneys in August over an $850m mortgage bond, faces three additional Justice Department civil probes over mortgage-backed securities, according to two people with direct knowledge of the situation.

Bloomberg reports that U.S. attorneys offices in Georgia and California are examining potential violations tied to Countrywide Financial, the subprime lender Bank of America bought in 2008, said the people, who asked not to be identified because the inquiries aren’t public. U.S. attorneys in New Jersey are looking into deals involving Merrill Lynch, purchased by the firm in 2009, the people said.

If claims are brought, Bank of America would join JPMorgan in facing Justice Department demands that it resolve liabilities inherited while buying weakened rivals at the government’s urging during the credit crisis. JPMorgan, the biggest U.S. bank, reached a tentative $13bn agreement last week to end civil claims over mortgage-bond sales, including those handled by Bear Stearns Cos. and Washington Mutual Inc. operations purchased in 2008.

To access the complete Bloomberg article hit the link below

BofA Said to Face Three More U.S. Probes of Mortgage-Bond Sales

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