Dec 12 Bank of America Corp has agreed to pay $131.8 million to settle U.S. Securities and Exchange Commission charges that its Merrill Lynch unit misled investors about collateralized debt obligations it structured and sold.
The regulator on Thursday said Merrill failed to tell investors that hedge fund firm Magnetar Capital LLC exercised significant influence in choosing collateral underlying two CDOs in 2006 and 2007. It also accused Merrill of maintaining inaccurate books and records on a third CDO.
Bank of America did not admit or deny wrongdoing. A spokesman, Bill Halldin said the bank is pleased to settle. Bank of America bought Merrill on Jan. 1, 2009.