Shareholders Files Suit Against Bank Of America’s Board
Several shareholders of Bank of America Corporation filed a caseagainst the bank for its alleged anomalous paperwork practices.
The suit was filed before a court in New York Supreme Court inManhattan.
Bank of America, a Charlotte based bank according to reports saysthat they did not record properly a lot of its mortgages uponacquiring or when originated. And this made the foreclosureprocess even more complicated when deemed necessary.
The complainants also said that the bank hid the fact that itsstaffing is lacking to process the humongous volume of foreclosedtransactions in its portfolio.
They also said that the mortgage issues contributed to by as muchas 42 percent decline in its stock price, soon after the problemwas disclosed.
Bank of America’s share were trading at $19.49 per share on April15, 2010 and hit bottom last November 2010 at only $11.16 pershare.
Officials of the bank refused to give any comments.
Bank of America have stopped all foreclosures last October 2, right after the reports that lenders were approving foreclosures of properties without even verifying and without thorough review of the papers.
They however restarted their foreclosure operation after aninternal review was conducted.
The shareholders are now accusing the head of the bank for hisalleged wasting of corporate assets and mismanagement, andbreaching of his fiduciary duties.
This is the latest development in the foreclosure crisis that havealready caused the bank much problems.
Since acquiring Countrywide Financial Corp last 2008, BofA has sent thousands of its employees to work with troubled homeowners andthose having bad mortgage loans.
The bank has also written off billions of dollars in mortgagerelated properties and investors are now asking the bank to getback the soured mortgage securities.
Last year the bank incurred a $3.6 billion loss.Tags: Finance, Breaking News, Finance, Finance News