Arab Today, arab today bank of america to pay for merrill\s bad disclosures
Last Updated : GMT 13:21:06
Arab Today, arab today
Arab Today, arab today

Charges announced by Securities and Exchange Commission

Bank of America to pay for Merrill\'s bad disclosures

Arab Today, arab today

Arab Today, arab today Bank of America to pay for Merrill\'s bad disclosures

Bank of America logo outside bank branch in Washington
Washington - Arab Today

Bank of America logo outside bank branch in Washington Bank of America agreed to pay $131.8 million for Merrill Lynch misleading investors about mortgage-linked securities in 2006 and 2007, the federal regulators announced Thursday. The charges announced by the Securities and Exchange Commission applied to Merrill Lynch, before it was acquired by Bank of America in 2009.
According to the SEC, Merrill Lynch did not disclose to investors that a hedge fund, Magnetar Capital LLC, had significant input in the selection of collateral for a pair of complex security vehicles Merrill structured and marketed to investors.
The SEC also charged Merrill with keeping inaccurate records about its participation in a third investment vehicle.
Merrill's omission was significant because Magnetar's interests were "not necessarily aligned" with other investors because Magnetar was betting the value of the investments, known as collateralized debt obligations, would fall, the SEC said in a statement.
"Merrill Lynch marketed complex CDO investments using misleading materials that portrayed an independent process for collateral selection that was in the best interests of long-term debt investors," said George Canellos, co-director of the SEC's Division of Enforcement.
"Investors did not have the benefit of knowing that a prominent hedge fund firm with its own interests was heavily involved behind the scenes in selecting the underlying portfolios."
In one case, Merrill, Magnetar and investment advisor Harding Advisory selected the collateral for the "Octans 1" CDO, but a Merrill disclosure mentioned the selection was made only by Merrill and Harding, the SEC said.
In another CDO dubbed "Norma," Merrill disclosures said the selections would be made by investment adviser NIR Capital Management when in fact one-third of the assets were acquired by Magnetar, the SEC said.
Merrill also violated books-and-records requirements for not disclosing payments to Magnetar related to trades until after the asset was priced, the SEC said.
A Bank of America spokesman said the firm is "pleased to resolve this matter, which pre-dated Bank of America's acquisition of Merrill Lynch."
The penalty was covered by the bank's existing legal reserves, he added.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank of america to pay for merrill\s bad disclosures Arab Today, arab today bank of america to pay for merrill\s bad disclosures

 



Arab Today, arab today
Arab Today, arab today Kanye West puts hijab-wearing model

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 17:36 2017 Monday ,13 February

Designer prepares to present 2017 collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday