Mo. entities could get $2.6M in BofA settlement
By AP / Kelsey Proud, St. Louis Public Radio
JEFFERSON CITY, Mo. –
Bank of America is the largest bank in the United States, but they've also landed themselves in $137 million worth of trouble.
The bank's problems may be Missouri's gain.
Bank of America has self-reported its wrongdoing in the municipal bond derivatives market. The Washington Post explains what they did:
"The banking giant is accused of taking part in a conspiracy in which it and other banks paid kickbacks to win the business of municipalities seeking to invest the proceeds of bond sales before the money is ready to be spent. The municipalities hired companies to help them find attractive investments. Under federal rules, these companies are required to use a bidding process allowing banks and investment firms to offer competing proposals for how to invest the municipalities' money. The companies are accused of directing the business to particular banks that paid them kickbacks. Bank of America was one such bank, according to federal officials."
So what does all of this mean for Missouri?
Missouri Attorney General Chris Koster says it all translates to about $2.6 million for entities in the show-me-state.