Bank of America Nearing SEC Settlement in Client-Accounts Probe, Sources Say
June 22 2016 - 5:52PM
Dow Jones News
By Jenny Strasburg
Bank of America Corp. has been in discussions with U.S.
regulators about paying $400 million to $450 million to settle
allegations it violated rules designed to safeguard client
accounts, according to people familiar with the matter.
The Securities and Exchange Commission has been investigating
whether Bank of America had proper controls for some customer
accounts and retail brokerage funds. One of the issues: whether the
bank used complicated trades and loans to free up billions of
dollars in cash for its own uses that it would usually have had to
set aside to meet regulatory requirements, people familiar with the
inquiry said. A settlement could be announced as soon as
Thursday.
A Bank of America spokesman declined to comment. A spokeswoman
for the SEC declined to comment.
A settlement of $400 million to $450 million would make the
accord one of the largest ever for the SEC. It would also be the
largest since a $616 million penalty paid by affiliates of SAC
Capital Advisors LP in 2013.
Write to Jenny Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
June 22, 2016 17:37 ET (21:37 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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