US SEC charges Bank of America subsidiary US$15 million for RMBS trader lapses
FILE PHOTO: The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, DC, U.S., June 24, 2011.
REUTERS/Jonathan Ernst/File Photo
WASHINGTON: The Securities and Exchange Commission on Tuesday said Bank of America subsidiary Merrill Lynch, Pierce, Fenner & Smith Inc. will pay US$15 million to settle charges that staff misled clients into overpaying for Residential Mortgage Backed Securities (RMBS).Merrill Lynch agreed to repay more than US$10.5 million to its customers and to pay penalties of approximately US$5.2 million. The SEC found that Merrill Lynch traders and salespersons convinced the bank's customers to overpay for RMBS by deceiving them about the price Merrill Lynch paid to acquire the securities.
(Reporting by Michelle Price; Editing by Chizu Nomiyama)
Source : http://www.channelnewsasia.com/news/business/us-sec-charges-bank-of-america-subsidiary-us-15-million-for-rmbs-trader-lapses-10425028