Bank of America is Being Investigated by the California AG

The Los Angeles Times is reporting that the California Attorney General’s office is investigating Bank of America (NYSE:BAC) in order to determine whether Bank of America and its Countrywide Financial subsidiary fraudulently sold risky mortgages to investors in California.

The paper reports:

The state is trying to determine whether the bank and its Countrywide Financial subsidiary sold investments backed by risky mortgages to institutional and private investors in California under false pretenses….The subpoenas, which were served Tuesday, came as talks continue for a broad foreclosure settlement by a coalition of state attorneys general and federal agencies.  California walked away from those discussions with major banks more than two weeks ago, saying what the banks were offering was not enough and the state would pursue its own investigations.

Shares of large banks are mixed today.  Following is some information on their stock price performance.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

Advantage: Check out our interactive stock charts, fundamentals, Twitter stream, and more >>

Improve Your 2011 Financial Health: Join the winning team of stock pickers with Wall St. Cheat Sheet’s acclaimed premium newsletter>>

More from The Cheat Sheet