SEC resolves Bank of America impasse

Bank Of America Corner Signs

The U.S. Securities and Exchange Commission resolved an impasse over punishing Bank of America in a mortgage-bond case, clearing the way for the lender to complete a $16.7bn global settlement, people familiar with the matter said.

Bloomberg News reports that in a private meeting earlier this week, SEC commissioners voted to waive most of a set of additional sanctions that could have seriously curtailed the bank’s asset management business and ability to raise money for private companies, according to the people, who asked not to be named because the decision isn’t yet public. Some of the relief is conditioned on the bank’s good behavior and comes with an outside monitor, the people said.

The bank also got hit with a penalty that takes away its ability to issue more shares or bonds without getting SEC approval for each deal.

The SEC’s decision came as Bank of America and the agency neared a deadline for a federal judge in North Carolina to sign off on the settlement. The two sides had twice sought more time from the court as negotiations dragged on.

To access the complete Bloomberg News article hit the link below:

Bank of America Granted Penalty Relief in SEC Mortgage Case

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