Bank of America Says $10.7 Billion of Trades Wrongly Classified

Bank of America Says $10.7 Billion of Trades Wrongly Classified
By David Mildenberg and Dakin Campbell - Jul 10, 2010 Email Share
Business Exchange Twitter Delicious Digg Facebook LinkedIn Newsvine Propeller Yahoo! Buzz Print Bank of America Corp., the largest U.S. bank by assets, said it wrongly classified as much as $10.7 billion of short-term repurchase and lending transactions as sales from 2007 to 2009 to reduce its end-of-quarter assets.

Bank of America said the inaccuracies aren’t material and “don’t stem from any intentional misstatement of the Corporation’s financial statements and was not related to any fraud or deliberate error,” according to a May 13 letter released yesterday from the U.S. Securities and Exchange Commission.

“A $10.7 billion accounting error would be a material event for about 99.9 percent” of U.S. banks, said Cornelius Hurley, director of the Morin Center for Banking and Financial Law at Boston University School of Law. “It’s hard to see how the SEC can accept BofA’s rejoinder as being sufficient.”
http://www.bloomberg.com/news/2010-07-10/bank-of-america-tells-sec-that-10-7-billion-of-trades-wrongly-classified.html

better believe us because we are still too big to fail.

phoney transactions and they are FRAUD, pure and simple.

Fastow's in prison. Looks like he'll be getting some well deserved company there.

or a home...ooopps silly butterfingers with all that money. Hey go on now, back to work!

see what happens to you.

You can always use the "don't stem from any intentional mistatement" line.

I'm sure the IRS will get a giggle out of that.