Friday, March 04, 2005

BANKING_U.S._Bank of America settled the Worldcom case

Bank of America Corp. yesterday agreed to settle a lawsuit accusing it of hiding risks from Worldcom Inc. investor in the expense of $460.5 million, after Citigroup, the lead underwriter in the case, paid $2.58billion to settle the same case, reported Reuters.

14 other banks, including J.P. Morgan Chase & Co. and Deutsche Bank AG, are still in the case.

The report said that the bank has recently made payments to resolve allegations over improper mutual fund trading and Enron Corp.'s collapse. It still faces lawsuits over its dealings with insolvent Italian dairy company Parmalat SpA.

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