Bank of America settlement "wont be the last" says Attorney General
JEFFERSON CITY (KMOX) – Missouri stands to gain 2-point-6 million dollars as a result of a multi-state settlement with Bank of America.
Attorney General Chris Koster says the bank will pay 67 million nationally, in what he describes as it’s involvement in a classic case of bid rigging.
“What would happen would be a governmental entity would let bonds, they would get the proceeds from those bonds and before they spent the money they would place the bonds in an interest bearing account” said Koster.
He says it was in those accounts that the interest rate was rigged between Bank of America and other players in the financial industry.
Koster says about fifty Missouri entities, such as governments and school districts will share in the 2.6 million dollars.
The multi-state settlement of 67 million is one component of an overall 137-million dollar settlement that Bank of America is entering into with several federal agencies.
Koster says there will likely be other financial institutions that will be paying a price in the coming weeks.
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