Bank of America may face civil charges over its actions during the financial crisis related to its mortgage products, the bank said in a filing to a US regulatory agency Thursday. The bank "has received a number of subpoenas and other requests for information from regulators and governmental authorities regarding MBS (mortgage backed securities) and other mortgage-related matters," it said in its quarterly report to the Security and Exchange Commission.
These requests come from the SEC, the Justice Department, and the New York Attorney General, the bank said. The justice department intends to file civil charges, while the SEC and the New York Attorney General are expected to follow suit, the bank said.
The Corporation has provided documents and testimony, and continues to cooperate fully with these inquiries and investigations," it said. It is "in active discussions with senior staff of each government entity in connection with the respective investigations and to explain why the threatened civil charges are not appropriate," it added. These new charges, if confirmed, would be in addition to a long series of lawsuits related to losses caused by securities backed by mortgages held by Bank of America and its subsidiaries before the financial crisis began in 2007.
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