The Bank of America is looking to pay another massive fine in New York City in order to settle some wrongdoings. According to reports, one of the biggest financial institutions in the world is looking to pay a whopping $42 million fine to solve the claims.
Furthermore, the bank has been reportedly doing this for a whopping 5 years in the row. The whole scheme made BofA’s trading service better and more sophisticated than what it should have been. The attorney general called their recent actions as the “masking” strategy.
Last week, the attorney general announced the whopping $42 million settlement with the prominent financial institution over their “masking” strategy. The strategy managed to hit a huge amount of clients, 16 million in total.
More information reveals that a whopping 4 billion trade share was affected by the massive scheme. It also managed to run from 2008 to 2013 according to the statements the attorney general provided.
Looking at what really had happened; Bank of America’s Merrill Lynch has been misleading their customers for the duration of 5 years. The bank has been informing their customers that billions of stock trades had been managed by their in-house team but were really passed to outside firms.
The financial institution managed to effectively hide their illegal activity by reprogramming their system to effectively change the confirmations the clients received. The reprogramming also managed to alter the trades that they were handling.
Attorney General, BofA Notes
The attorney general noted that “Bank of America Merrill Lynch went to astonishing lengths to defraud its own institutional clients about who was seeing and filling their orders, who was trading in its dark pool, and the capabilities of its electronic trading services,"
Meanwhile, BofA said in a statement that "The settlement primarily relates to conduct that occurred as long as 10 years ago. At all times we met our obligation to deliver the best prices to clients. About five years ago, we addressed the issues concerning communicating to clients about where their trades were executed."
BofA’s Market Performance
Bank of America was trading in the bearish territory today with massive dips being tallied since last Friday. Today, the financial institution is shedding a massive 4.49% decrease on the midday trading with more expected to hit just before closing.
Similar reports were also settled by financial institution around the world such as; Barclays, Credit Suisse Group AG, and Deutsche Bank. According to reports, the banks paid $35 million, $30 million, and $18.5 million respectively.
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