Financial Biz Review: BofA’s NEW Scandal, JPMorgan was WARNED

Executives at Bank of America (NYSE:BAC) were informed just days before the bank’s shareholders approved the $50 billion Merrill Lynch acquisition, that losses at the latter would impact the combined firm’s earnings for years to come, but that piece of information was withheld from the investors who okayed the buyout. Court documents were filed on Sunday that amplified the omission, which might well induce Federal regulators to hold top brass in such firms more accountable for their actions during crises.

Investing Insights: DJIA Week in Review: Coca-Cola’s Health Obstacle, New BofA Plan Comes in July.

Here it comes. It now appears that key executives at JPMorgan (NYSE:JPM) were warned – more than one year ago – by CtW Investment Group, that it needed to upgrade its risk controls. Now being fast-tracked at JPM: two of CtW’s proposals, i.e., allowing the chief risk officer additional power to monitor CIO trades; and beefing up the board’s risk management committee.

Lloyd’s (NYSE:LYG) divests for $621 million, a portfolio of dustressed Australian property loans to a group led by Blackstone and Morgan Stanley, with a paper face value of $1.8 billion. The sale constitutes a portion of Lloyd’s ongoing process of strengthening its balance sheet.

Don’t Miss: Weekly Financial Biz Recap: JPMorgan SCANDAL Details, Wells Fargo CEO Speaks.

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