B of A Subpoenaed by Massachusetts Over CLOs
By: Allison Bisbey, American Banker (Feb 2012)
Allison Bisbey's "B of A Subpoenaed by Massachusetts Over CLOs" reports on Massachusetts subpoena of Bank of America over two CLOs issued by BofA in 2007 - LCM VII and Bryn Mawr II. SLCG first publicized the problems with these two CLOs ten days earlier in "CLOs, Warehousing, and Banc of America's Undisclosed Losses". Secretary Galvin apparently read and liked SLCG's January 31, 2012 press release about these two CLOs.
Recent Award
- Hayes v Banc of America Securities - $1.4 million CLO Award
A Wipeout That Didn't Have to Happen
By: Gretchen Morgenson, The New York Times (Feb 2012)
Gretchen Morgenson's "A Wipeout That Didn't Have to Happen" reports on research done at SLCG into collateralized loan obligations (CLOs) underwritten by Banc of America, Citigroup and other firms in 2007 which resulted in a $1.4 million FINRA award in the case of Hayes v Banc of America Securities. In "Collateralized Loan Obligations, Warehousing, and Banc of America's Undisclosed Losses", Tim Husson, Craig McCann, and Olivia Wang document two examples of CLO offerings in which Banc of America appears to have transferred at least $35 million of losses to investors in July 2007 and which ultimately led to approximately $150 million in losses. Banc of America Securities sold one of the problematic CLOs they identified, LCM VII, to Mr. Hayes.
