Banc of America Background Information
Through mergers and acquisitions, BAC’s commercial banking unit has become the largest issuer of credit, debit and prepaid cards in the world.
Banc of America Securities LLC (BAS) is the investment banking subsidiary of Bank of America. It is registered as a broker-dealer through the National Association of Securities Dealers, Inc. (NASD), and by all 50
BAS is a full-service securities firm, which offers securities brokerage, research, trading, underwriting, financial advisory and other investment services. It claims to be the fastest growing investment bank on Wall Street, taking on such powerhouses as Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley, and Lehman Brothers.
BAS’s sister company, Global Wealth and Investment Management (GWIM), is actually a combination of several firm which manages the assets of institutions and individuals. GWIM claims to be among the 10 largest
Shepherd Smith Edwards & Kantas LTD LLP Law Firm
Our law firm represents institutional and individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts. Our attorneys and staff have more than 100 years of combined experience in the securities industry and in securities law. Several of our lawyers served for years as Vice President or Compliance Officer of brokerage firms.
Each lawyer and staff member of our firm is devoted to assisting investors to recover losses caused by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. We have handled over a thousand cases against hundreds of large and small investment firms, including claims against Banc of America Securities and other firms under the umbrella of Bank of America Corporation.
Call us at (800)259-9010 or contact us through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with an investment advisor or financial firm which resulted in losses.
On the eve of their merger, Bank of America and FleetBoston Financial will pay a total $515 million to settle claims of “late trading” of mutual-funds as part of the largest mutual fund scandal in history. The firms have also agreed to reduce the fees investors pay by $160 million over a 5 year period, federal and
Eight members of the board of directors of Nations Funds, Bank of America’s group of mutual funds, also will be required to resign their positions within a year for their alleged role in allowing the trading violations — the first sanction of its kind.
“These directors clearly failed to protect the interest of investors,” said New York Attorney General Eliot Spitzer. “They acknowledged the problem of market timing, but then allowed a favored client to engage in that harmful practice. The departure of these board members should sound an alarm for all those who serve in similar capacities.”
Allegations included that traders at the Bank of America’s securities subsidiary assisted select clients to illegally trade in mutual funds after-hours at stale prices, or “late trading” at the expense of ordinary investors. It was claimed that at least one client was given access to an electronic trading platform that let it trade funds as late as 8:30 p.m., yet still get the 4 p.m. price.
In addition, the two firms — which plan to merge — agreed to make certain changes in their mutual fund operations, including the board overhaul. Regulatory say the fines and sanctions are designed to increase protection of investors in the $7 trillion mutual fund industry.
Banc of America Investment Services, Inc. (BAIS) was fined $3 million fine by the National Association of Securities Dealers (NASD) for violating regulations designed to screen money laundering. According to the NASD, the firm not only failed to secure client information for accounts considered “high-risk,” but did not file an independent Suspicious Activity Report (SAR) despite repeated requests from its clearing firm.
According to the NASD’s report, although BAIS has anti-money laundering guidelines, the firm ignored these and never obtained the names the owners when these were opened in August 2003. The bank then authorized wire transactions involving millions of dollars across international borders from August 2003 to
A senior lawyer and member of the risk committee of BAIS separately advised the firm to secure the clients’ names, which the financial institution apparently disregarded. It also ignored multiple requests from its clearing firm to file an independent SAR report.
The $3 million fine penalty is the largest the NASD has imposed on a financial institution for such violations. But this is not the first such offense for Bank of America. In September 2006, it paid $7.5 million in settlement after a