U.S. SEC charges Bank of America subsidiary $15 million for RMBS trader lapses

WASHINGTON (Reuters) – The Securities and Exchange Commission on Tuesday said Bank of America (NYSE:) subsidiary Merrill Lynch, Pierce, Fenner & Smith Inc. will pay $15 million to settle charges that staff misled clients into overpaying for Residential Mortgage Backed Securities (RMBS).

Merrill Lynch agreed to repay more than $10.5 million to its customers and to pay penalties of approximately $5.2 million. The SEC found that Merrill Lynch traders and salespersons convinced the bank’s customers to overpay for RMBS by deceiving them about the price Merrill Lynch paid to acquire the securities.

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