Bank of America Agrees to $5.6 Million Settlement with DOJ Over Market Manipulation Charges

BofA Securities will pay $5.6 million to settle a Department of Justice investigation into market manipulation. The payment is part of a broader resolution related to the bank's activities, but details of the investigation were not disclosed. The settlement is a significant step in resolving regulatory issues for Bank of America Corporation, which has operations in commercial banking, business and investment banking, wealth management, market banking, and other areas.

Bank of America Securities has agreed to pay $5.6 million to resolve a criminal investigation by the Department of Justice (DOJ) into alleged market manipulation schemes by former employees. The settlement includes a disgorgement of $1.96 million and a contribution of $3.6 million to a victim compensation fund Bank of America to Pay $5.56M to Settle Trading Manipulation Probe^[1].

The investigation, which spanned from November 2014 to April 2020, found evidence of market manipulation by two traders on the bank's U.S. Treasuries desk. One of the traders, Tyler Forbes, pleaded guilty in 2022 to manipulating U.S. Treasury securities prices BofA Securities Inc. Resolves Criminal Investigation with Justice Department Pursuant to Part I of the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy^[2]. The traders manipulated the secondary market and the futures market for U.S. Treasuries by placing orders without intent to execute them, a practice known as spoofing US Justice Department says Bank of America Securities resolves criminal investigation^[3].

The settlement is a result of the bank's timely and voluntary self-disclosure of the misconduct, as well as its full cooperation throughout the investigation. Bank of America also conducted an internal review, terminated the junior trader involved, and invested in its surveillance programs Bank of America to Pay $5.56M to Settle Trading Manipulation Probe^[1].

This settlement is part of a broader resolution for Bank of America Corporation, which operates in various financial sectors including commercial banking, business and investment banking, wealth management, and market banking Bank of America to Pay $5.56M to Settle Trading Manipulation Probe^[1]. The settlement underscores the bank's commitment to compliance and regulatory standards, which are crucial for maintaining investor confidence.