Bank of America has been in the media for some time now and it hasn’t been for any positive reasons. Bank of America purchased the largest US mortgage lender, Countrywide, in 2008 and is now being sued by investors who say they have been victims of a “massive fraud” deal. According to large investors such as TIAA-CREF, New York Life Insurance Company, and Dexia Holdings, Bank of America misrepresented the hundreds of millions of dollars worth of securities they sold to them as low risk and conservative. Investors are now upset as these securities have accrued “junk” credit which has resulted in large losses for them. Shirley Norton, Bank of America spokesperson, claims that these large investors are just using them as a scapegoat as to why their investments have lost value in this economy. The lawsuit was filed this last Monday with 12 plaintiffs involved.
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