Defendant Name:
Banc of America Investment Services, Inc
Defendant Type:
Subsidiary of Public Company
Document Reference:
LR-21066_09-cv-05170
Document Details
Legal Case Name
SEC v. Banc of America Securities LLC and Banc of America Investment Services, Inc.
Document Name
SEC Finalises ARS Settlements With Bank of America, RBC and Deutsche Bank, Providing Over $6 Billion in Liquidity to Investors
Document Date
03-Jun-2009
Document Format
Civil Proceeding
Case Number
09-cv-05170
Federal District Court
New York, Southern District of New York
Allegation Type
Broker Dealer
Document Summary
The SEC "announced that it has filed
complaints in the United States District Court for the Southern District of
New York against Banc of America Securities LLC and Banc of America
Investment Services, Inc. (collectively, Bank of America), RBC Capital
Markets Corporation (RBC), and Deutsche Bank Securities Inc. (Deutsche
Bank) alleging that the firms misled investors regarding the liquidity risks
associated with auction rate securities (ARS) that they underwrote,
marketed or sold."
Disgorgement & Penalty Information
Resolutions
Enjoinment
Various undertakings: "will offer to purchase ARS at par from individuals, charities, and small or medium businesses that purchased those ARS from the firm, even if those customers moved their accounts . . . will use its best efforts to provide liquidity solutions for institutional and other customers, including, but not limited to, facilitating issuer redemptions, restructurings, and other reasonable means, and will not take advantage of liquidity solutions for its own inventory before making those solutions available to these customers . . . will pay eligible customers who sold their ARS below par the difference between par and the sale price of the ARS."
Related Documents:
2008-247
08-Oct-2008
Press Release--Civil Action
Bank of America Agrees in Principle to ARS Settlement
The SEC announced: "a preliminary settlement in principle with Banc of America Securities LLC and Banc of
America Investment Services, Inc. (collectively, Bank of America) that would provide 5,500 individual investors, small businesses, and small charities the opportunity to sell back to Bank of America up to $4.7 billion in auction rate securities (ARS) they purchased before the ARS market collapsed in February 2008."
Complaint
According to the SEC: "This is a case in which Defendants misled thousands of customers regarding the fundamental nature and risks associated with auction rate securities ('ARS') that BOA underwrote, marketed, and sold."
SEC Finalizes ARS Settlements With Bank of America, RBC, and Deutsche Bank
The SEC "announced finalized settlements with Bank of America,
RBC Capital Markets, and Deutsche Bank to resolve SEC charges that the
firms misled investors regarding the liquidity risks associated with auction
rate securities (ARS) that they underwrote, marketed, or sold."
Judgment as to Defendants Banc of America Securities LLC and Banc of America Investment Services, Inc.
On June 4, 2009, Federal District Judge Loretta A. Preska entered Final Judgment against Banc of America Securities LLC and Banc of America Investment Services, Inc., pursuant to the consent of the SEC and Banc of America Securities LLC and Banc of America Investment Services, Inc. Among other things, Judge Preska ordered that upon motion of the Commission, "the Court shall determine whether it is appropriate to order a civil penalty ... and if so, the amount of the civil penalty."
SEC Completes Review of Performance by Bank of America Under Auction Rate Securities Settlements
On December 15, 2010, the SEC issued a litigation release announcing that: "Bank of America ('BOA'), which previously settled the Commission's auction rate securities ('ARS') charges against it, has satisfied its obligation under its settlement and that BOA has returned more than $6.7 billion to its ARS customers."
Notice that Plaintiff Will Not File a Motion for Civil Penalty
On December 15, 2010, the SEC informed the Court that the SEC will not file a motion for civil penalty.
Other Defendants in Action:
