BoA does deal with Justice Department over municipal bonds

The deal, which protects the bank from any criminal antitrust prosecution, results from its providing the department with information about bidding practices in municipal derivatives last year.

The department has probed other New York firms for information on municipal bonds practices, following concerns over illegal activity surrounding the proceeds from municipal bonds, and how the money is invested prior to spending on public projects.

The Department of Justice is investigating possible anti-competitive practices, including 'blind pool' transactions in which underwriters issue bonds for unspecified projects, the proceeds of which are then re-invested, raising questions about whether these investments were properly bid out. There are also concerns about tax evasion by underwriters and consultants. The industry faced scrutiny in the 1990s over the marking-up of bond prices.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here