CORRECT: Bank Of America’s DOJ Letter Entered In 2007

CORRECT: Bank Of America’s DOJ Letter Entered In 2007

Last Update: 2/28/2008 5:19:15 PM

DOW JONES NEWSWIRES

Bank of America Corp. (BAC) disclosed on Thursday that, in response to probes
into its dealings in municipal bond derivatives, it has reached an agreement with
the U.S. Department of Justice to avoid criminal prosecution. However, the
company said, the Securities and Exchange Commission has taken steps toward its
own enforcment action against the company.

Bank of America said the Justice Department agreement, which is contingent on the
company’s continued cooperation, doesn’t rule out civil antitrust actions, but
could limit the potential liability.

The government agencies have been probing a number of financial services
companies, looking into the possibility of bid-rigging and other abuses in the
municipal-bond market.

Bank of America said its Bank of America N.A. unit this month received a
so-called “Wells Notice” indicating the SEC staff is considering recommending an
enforcement action “in connection with the bidding of various financial
instruments associated with municipal securities.”

A Wells Notice is the SEC’s process by which it notifies companies of potential
charges, giving them the opportunity to respond. Bank of America said it intends
to respond.

UBS AG (UBS) said this month that it, too, had received an SEC Wells Notice in
connection with its activity in the municipal-bond market, and earlier Thursday,
Wachovia Corp. (WB) disclosed that its Wachovia Bank had received supboenas from
the Justice Department and the SEC.

The industry-wide investigations concern the bidding process for municipal
derivatives that are offered to states, municipalities and other issuers of
tax-exempt bonds.

Bank of America said the SEC could seek a permanent injunction, disgorgement plus
prejudgment interest, civil penalties and other remedial relief.

The company said that on Jan. 11, 2007 it entered into a “Corporate Conditional
Leniency Letter” with the Justice Department. Under the letter, the department
own’t bring criminal antitrust charges in connection with matters the company
reported to the agency.

Civil actions may still be filed, but the company is eligible for a limit on
liability to single, rather than treble, damages in some types of civil antitrust
actions, and relief from joint and several antitrust liability with other civil
defendants.

-Tony Cooke, Dow Jones Newswires; 202-862-1347; tony.cooke@dowjones.com

Bank of America Corp. (BAC) said that on Jan. 11, 2007, it entered into a
“Corporate Conditional Leniency Letter” with the Justice Department.

(The story “Bank Of America Gets SEC Wells Notice In Muni Bond Probe >BAC,”
published at 4:39 p.m. EST, incorrectly said the leniency letter was entered into
on Jan. 11, omitting the year.)

(END) Dow Jones Newswires

February 28, 2008 17:19 ET (22:19 GMT)

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