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$67 Million Settlement with Bank of America
CHICAGO (AP) -- Illinois Attorney Lisa Madigan and her counterparts from 19 other states have announced a $67 million settlement with Bank of America for its involvement in a nationwide scheme to prevent competitive bidding in the sale of financial instruments called municipal derivative investments.

The scheme allegedly defrauded state agencies, municipalities, school districts and nonprofits that bought the derivatives.

Madigan says the settlement announced Tuesday is part of a larger $137 million settlement Bank of America reached with federal agencies.

The U.S. Department of Justice granted Bank of America conditional leniency in the case because it was the only institution to voluntary report its wrongdoing to federal investigators.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
12 08 10 by Newsroom
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