Merrill Lynch to Pay Back More Than $10 Million over Securities Fraud

[kreslik.news]

The Securities and Exchange Commission (SEC), a US regulator, announced on Tuesday that it will be fining Merrill Lynch, Pierce, Fenner & Smith Inc (Merrill Lynch) $5.2 million. The fine stems from deals involving residential mortgage backed securities (RMBS) and the broker-deal will also have to pay back $10.5 million to customers.

Over the course of its investigation, the SEC found that Merrill Lynch, a Bank of America subsidiary, had lied to its customers regarding the pricing of RMBS. Traders and salespeople working for the firm were able to convince customers to overpay for the securities by lying about ... (read more)