March 31 A federal judge on Monday recommended
rejecting Bank of America Corp's bid to dismiss a U.S.
Securities and Exchange Commission lawsuit over $855 million of
mortgage securities that soured during the global financial
U.S. Magistrate Judge David Cayer in Charlotte, North
Carolina, made the recommendation four days after urging the
dismissal of a separate, related U.S. Department of Justice
lawsuit that alleged violations of a different law.
That ruling had been seen as a possible setback for
government efforts to fight fraud in the sale of mortgage
"We are reviewing the magistrate judge's recommendation
carefully," bank spokesman Lawrence Grayson said on Monday, with
regard to the SEC case.
Both recommendations are subject to review by U.S. District
Judge Max Cogburn in Charlotte. District judges are not bound by
magistrate judges' recommendations but often follow them.
(Reporting by Jonathan Stempel in New York; Editing by Lisa