Legal News

BOA Investigated by DOJ
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Bank of America Corp is being investigated by the U.S. Department of Justice as well as the Commodity Futures Trading Commission. Ultimately, “handling of future trades” is what is being investigated. Specifically, the Western District of North Carolina’s U.S. Attorney’s Office is “examining whether it was proper for the swaps desk to execute futures trades prior to the desk’s execution of block future trades on behalf of counterparties.”

While spokesmen for the bank declined to comment, Bloomberg notes that whether or not accurate information was provided to the DOJ is a question. At the same time, the CFTC is conducting their own probe into the matter. The U.S. Attorney’s Office in Charlotte as well as representatives from the Bank of America Corp both declined to comment.

  
What
Where


The issue being looked into considers that some bank employees “may have profited by trading ahead of Fannie Mae and Freddie Mac swap orders.” Ultimately the duty of the fiduciary as was laid to the side by certain parties. Trading ahead is an act in violation of the rules of the New York Stock Exchange. It happens when a party trades securities before they execute trades on behalf of their client. This act by nature puts customers at a disadvantage and those actors who do this deed are essentially taking advantage of their information privileged position.

image credit: www.justice.gov

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Patent Agent with 1 year of chemistry experience

USA-CA-Palo Alto

Palo Alto office of our client seeks entry-level patent agent with 1 year of experience. The candida...

Apply Now

RELEVANT JOBS

Employment Law Associate

USA-NY-New York City

Fitapelli & Schaffer, a nationally recognized employment law and class action firm is seeking an ass...

Apply now

Legal Secretary / Assistant

USA-CA-Bakersfield

Small boutique litigation firm seeks a legal assistant with a minimum of two (2) years legal secreta...

Apply now

Associate Attorney

USA-CA-Los Angeles

Boutique law firm in Downtown Los Angeles looking to hire a family law attorney with substantial fam...

Apply now

Law Office Administrator / Manager

USA-CA-Beverly Hills

Responsible for handling, managing and overseeing all front and back office duties.  This ...

Apply now

SEARCH IN ARCHIVE

To Top