Bank Of America To Pay Millions To Fed, State Agencies In Antitrust Judgement
Washington, D.C., United States (AHN) – One of the major American banks on Wednesday got slapped with millions to compensate previous misdeeds and to join special governmental antitrust programs, a communique from the Justice Department noted.
“Bank of America entities have agreed to pay a total of $137.3 million in restitution federal and state agencies for its participation in a conspiracy to rig bids in the municipal bond derivatives market and as a condition of its admission into the Department of Justice’s Antitrust Corporate Leniency Program,” the statement from the Department of Justice announced.
“The Department of Justice’s Antitrust Corporate Leniency Program is essential to our criminal enforcement of the antitrust laws,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
On the Bank of America joining the program, Varney noted, “The bank’s participation in the leniency program has also resulted in today’s resolution to address the harm caused by its wrongdoing.”
Defining “prosecution of anticompetitive conduct in the financial markets,” as the department’s “highest priority,” Varney said, “Bank of America’s disclosure of wrongdoing and cooperation has led to an aggressive, ongoing investigation by the Department of Justice into anticompetitive activity in the municipal bond derivatives industry.”
Bank of America entered into agreements with the U.S. Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), the Office of the Comptroller of Currency (OCC), and 20 State Attorneys General, the Justice Department announced.
According to departmental documents, Bank of America employees engaged in illegal conduct, including bid rigging and other deceptive practices, in connection with the marketing and sale of tax-exempt municipal bond derivatives contracts.
The Justice Department noted that its ongoing investigation has resulted in charges against seven executives and one corporate entity and guilty pleas by eight executives for antitrust and related federal crimes. “The investigation remains active and ongoing,” noted the Justice Department.
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