Business Crimes Hotline

According to the government, Bank of America was both the first and only entity to report its anticompetitive conduct in the municipal bond derivatives market to the DOJ prior to the department opening its continuing investigation that, to date, has led to guilty pleas by eight executives for antitrust and related federal crimes, in addition to pending charges against one corporate entity and seven additional executives. No penalties will be levied against Bank of America as part of the agreements, in further recognition of its voluntary disclosure to the Antitrust Division. If Bank of America and its current employees continue to cooperate with the Department and successfully complete the additional requirements for a participant in the Leniency Program, the Antitrust Division will not proceed with prosecution against either.

In announcing the agreement, Christine Varney, Assistant Attorney General in charge of the DOJ's Antitrust Division, stated: “Bank of America's disclosure of wrongdoing and cooperation has led to an aggressive, ongoing investigation by the Department of Justice in anticompetitive activity in the municipal bond derivatives industry. The bank's participation in the leniency program has also resulted in today's resolution to address the harm caused by its wrongdoing. The Division's investigation of this matter continues and the prosecution of anticompetitive conduct in the financial markets remains our highest priority.”

DISTRICT OF COLUMBIA

$137.3 Million Global Restitution Agreement with Bank of America

On Dec. 7, 2010, the DOJ announced that Bank of America entities had reached a global agreement with the SEC, the IRS, the Office of the Comptroller of Currency (OCC), and 20 State Attorneys General, in connection with the company's voluntary disclosure of its participation in a bid-rigging conspiracy within the municipal bond derivatives market. Specifically, Bank of America's employees rigged bids and engaged in related deceptive practices as part of the sales and marketing for tax-exempt municipal bond derivatives contracts. As part of the global agreement and as a condition of its subsequent admission into the DOJ's Antitrust Corporate Leniency Program, Bank of America agreed to pay total restitution of $137.3 million to federal and state agencies, including municipalities harmed by the anticompetitive activities. The bank also reached an agreement with the Federal Reserve Board regarding remedial measures.

According to the government, Bank of America was both the first and only entity to report its anticompetitive conduct in the municipal bond derivatives market to the DOJ prior to the department opening its continuing investigation that, to date, has led to guilty pleas by eight executives for antitrust and related federal crimes, in addition to pending charges against one corporate entity and seven additional executives. No penalties will be levied against Bank of America as part of the agreements, in further recognition of its voluntary disclosure to the Antitrust Division. If Bank of America and its current employees continue to cooperate with the Department and successfully complete the additional requirements for a participant in the Leniency Program, the Antitrust Division will not proceed with prosecution against either.

In announcing the agreement, Christine Varney, Assistant Attorney General in charge of the DOJ's Antitrust Division, stated: “Bank of America's disclosure of wrongdoing and cooperation has led to an aggressive, ongoing investigation by the Department of Justice in anticompetitive activity in the municipal bond derivatives industry. The bank's participation in the leniency program has also resulted in today's resolution to address the harm caused by its wrongdoing. The Division's investigation of this matter continues and the prosecution of anticompetitive conduct in the financial markets remains our highest priority.”