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Galvin Targets Bank With Lawsuit

Jun 16, 2010 | Reprints | Unlock Link | Print

Secretary of State William Galvin The Massachusetts secretary of state is accusing Bank of America’s investment arm of misleading an investor.

Secretary of State William Galvin said in a statement Wednesday that Banc of America Investment Services Inc. of Boston misled the investor about federal step-up bonds to maintain his $2 million worth of investments.

Galvin says the bankers’ actions demonstrate the risks to investors when retail banks merge with brokerages. The secretary also chided the financial institution for allegedly praising the two employees who dealt with the investor, even though their actions violated BAI’s policies.

Bank of America said it is cooperating with the state to resolve the matter. Galvin said the customer’s money was returned. The person’s identity was not released.

Banking & Lending