Bank of America has been sued by investors over $261.2m worth of residential mortgage-backed securities.
Bloomberg reports that the case was filed last week in New York state Supreme Court in Manhattan by investors including Phoenix Light SF Ltd. They asked for damages of more than $122.2m from defendants including the Charlotte, North Carolina-based lender and its Countrywide unit.
In the meantime, JPMorgan Chase & Co. (JPM) is expected to receive an order from regulators to bolster anti-money laundering systems and examine past transactions, the Wall Street Journal reported, citing people familiar with the matter.
And Bloomberg reports that The Office of the Comptroller of the Currency will give the cease-and-desist order amid a wider crackdown on the nation’s largest banks, the people said, according to the newspaper. JPMorgan spokeswoman Kate Haywood in London declined to comment, as did a spokeswoman in Hong Kong.
Reuters reports that a former top investigator at the U.S. Securities and Exchange Commission's internal watchdog office has sued the agency, alleging wrongful termination and seeking $20m in damages.
Finally, the news agency also reports that New York Attorney General Eric Schneiderman on Friday warned Wells Fargo & Co that the U.S. bank's policy to delay mortgage modification decisions in states affected by Hurricane Sandy likely violates a national mortgage settlement.
Schneiderman said his office has been contacted by lawyers representing homeowners in New York who have been notified by the bank that it's suspending decisions on loan modifications until it receives information from the Federal Emergency Management Agency.
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