Court Said Shareholders Can Proceed In BofA Legal Action
The sins of the collateral mortgage debt days continue to haunt Wall Street. Fox News reported that a federal judge has given a group of Bank of America Corp. shareholders a green light to pursue civil securities fraud charges against the corporation. The shareholders, led by the Pennsylvania Public School Employees' Retirement System, say the bank misled them when investing in mortgage-backed securities, and improperly relied upon an electronic mortgage registry. The lawsuit is one of many to be filed as an offshoot of the financial crisis, which resulted in securities firms stuffing investment portfolios with toxic mortgage securities that ultimately imploded.