BofA ordered to pay for $140m over Takefuji bond deal

Sunset in Tokyo, Japan

The Tokyo High Court ordered payment of compensation for losses totalling $140 million.

Bloomberg News reports that Bank of America Corp.’s Japanese brokerage unit was ordered to pay $140m by the Tokyo High Court for its role in a bond transaction with failed consumer lender Takefuji Corp.

On Thursday the court ordered Merrill Lynch Japan Securities Co. and an affiliate to pay compensation for losses stemming from the 2007 bond deal, overturning a district court judgment made last year, TFK, an entity responsible for repaying creditors following Takefuji’s 2010 bankruptcy, said in a statement on its website yesterday.

Merrill Lynch hasn’t decided whether it will appeal to the Supreme Court, said Tsukasa Noda, a Tokyo-based spokesman. The firm will examine the ruling and make a decision, he added. Charlotte, North Carolina-based Bank of America acquired Merrill Lynch in 2009.

Hit the link below to access the complete Bloomberg News article:

BofA’s Merrill Japan Ordered to Pay Damages to Takefuji

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