California reportedly subpoenas BofA over toxic securities

[cal04]

Source: Los Angeles Times

California is trying to determine whether BofA and its Countrywide Financial subsidiary sold investments backed by risky mortgages to investors in California under false pretenses, a source says.

Investigators with the state attorney general's office have subpoenaed Bank of America Corp. in connection with the sale and marketing of troubled mortgage-backed securities to California investors, according to a person familiar with the probe.

The state is trying to determine whether the bank and its Countrywide Financial subsidiary sold investments backed by risky mortgages to institutional and private investors in California under false pretenses, according to the person, who was not authorized to speak publicly and requested confidentiality.

The subpoenas, which were served Tuesday, come as talks continue for a broad foreclosure settlement by a coalition of state attorneys general and federal agencies. California walked away from those discussions with major banks more than two weeks ago, saying what the banks were offering was not enough and the state would pursue its own investigations.

Read more: http://www.latimes.com/news/local/la-fi-bank-america-harris-20111020,0,7737925.story

[Lint Head]

1. Excellent!

[nineteen50]

8. False pretense would be

fraud. All debt crated by fraud should be dismissed.

[mike_c]

2. this should further split state AGs from the settlement process...

...if the data show malfeasance on the part of banks, which is pretty much a given, IMO. The more sunlight that's directed under their rock, the better.

[YvonneCa]

3. Glad to see this. n/t

[msongs]

4. stop the Obama administration sell out to wall street banks...that's a good thing nt

[abelenkpe]

5. K&R nt

[elleng]

6. Good news; another strong State Attorney General.

[McCamy Taylor]

7. Now we know why BofA wants another federal bailout.

[sarcasmo]

9. Let these greedy parasites fail.