, Columnist
Feds Get Around to Suing Bank of America
The Securities and Exchange Commission, along with the Justice Department, have sued Bank of America Corp. over a collateralized debt obligation that went bad.
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The wheels of civil liability turn slowly at the Securities and Exchange Commission, which was doubly evident today when the agency brought two cases against big banks dating back to the credit-bubble era, including one where the agency tag-teamed with the Justice Department.
The first was against the Swiss bank UBS AG, which agreed to pay $50 million tosettle claims of misleading investors in 2007 while structuring and selling a collateralized debt obligation. This is a fancy term for a bond, except the bond in this case was one of those extra-complex sorts where the collateral included derivatives linked to other subprime mortgage bonds.