Share
Dismiss shareholders' lawsuits,
BofA asks federal judge in Manhattan
Bank of America Corp. asked a federal judge to dismiss shareholder lawsuits over its purchase of Merrill Lynch & Co. The dismissal request was filed this week in Manhattan federal court.
Investors in the class-action suit claim that Bank of America misled them into voting for the Merrill purchase. The bank has denied any wrongdoing. Bloomberg News
BNP Paribas, Deutsche Bank take BofA to court over securities
Bank of America was sued by BNP Paribas Mortgage Corp. and Deutsche Bank AG over hundreds of millions of dollars in losses they sustained by investing in asset-backed commercial paper.
BNP Paribas and Deutsche Bank on Wednesday filed separate lawsuits in Manhattan federal court. They say they bought a total of $1.6 billion in asset-backed notes issued by a special purpose entity known as Ocala Funding LLC, which provided funding for mortgage loans originated by Taylor, Bean & Whitaker Mortgage Corp. To reduce risk, they say they insisted Ocala hold $1.6 billion in cash or mortgage loans as collateral to be deposited with Bank of America, the deal's trustee.
Deutsche Bank "trusted that BofA, one of the nation's largest and most well-known financial institutions, would perform the gatekeeper function reasonably and responsibly," the Frankfurt-based bank says in its complaint. "In myriad ways, BofA failed to carry out its various duties designed to protect DB's investment."
Ocala was a commercial-paper vehicle sponsored by now- bankrupt Taylor Bean, which was the 12th-largest U.S. home lender.
Bloomberg News
