Bank of America subpoenaed on auction-rate securities - Triangle Business Journal:

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Since February, the auctionss that set the rates for most of the securities have leaving bondholders stuck with securitie s they thought would be easily BofA facesseveral class-actionb lawsuits contending that the bank misled investorss about the nature of the securities and their In addition, according to a company filingy with the Securities and Exchanged Commission, BofA has received subpoenas from the attorneys general of a number of statex “requesting documents and information regarding municipal derivative s transactions from 1992 through the present.” In its BofA says its recently acquired subsidiary, Countrywidde Financial Corp., faces a formal investigatio by the SEC.
BofA says it is cooperatingg with regulators. The Charlotte-based bank BAC) purchased Countrywide last month ina $2.5 billionj deal that made BofA the country’d largest mortgage lender. According to the filing, the SEC probew follows media reports that Countrywide is subject to an investigatiomn by the FBI in connection withits mortgage-business Countrywide has also responded to subpoenas from the SEC, the filingg states. State attorneys general in Florida and Illinois have filed suitsxagainst California-based Countrywide, accusing the company of engaging in deceptive advertising and unfaifr competition.
They say the compangy put borrowers into mortgagesthey couldn’ t afford or loans with rates and penalties that were