Shareholders demanding BofA investigation

by Kelli Rogers26 Jun 2013
An institutional investor has joined the ranks of those calling on Bank of America CEO Brian Moynihan and the bank's board to investigate the allegations from former employees that they were encouraged to deny homeowners seeking mortgage modifications.
Houston-based shareholder Finger Interests Number One blasts the board and the company's management in a letter filed with the Securities and Exchange Commission, saying "nothing has really changed" under Moynihan and the leadership of Chairman Charles Holliday.
The letter comes on the heels of statements filed this month in federal court in Boston, where class-action status is being sought for a lawsuit against the bank over the federal Home Affordable Modification Program.
The homeowners in the lawsuit claim that the Charlotte, N.C.-based bank wrongfully denied them modifications under HAMP and violated the program's rules. Bank of America, the lawsuit says, would "string homeowners along with no intention of providing actual and permanent modifications."
"The case and, more importantly, the affidavits ... say volumes about the failures of senior management and the board of directors to materially change the corporate culture that has long existed at Bank of America prior to Brian Moynihan's ascendance or most of this board of directors' inauguration," says the letter, which the SEC posted on its website Monday.
According to the company, Finger owns roughly 1 million Bank of America shares, or less than 1% of the bank's outstanding shares.


Should CFPB have more supervision over credit agencies?