WASHINGTON — The U.S. government has accused Bank of America Corp. of civil fraud, saying the company failed to disclose risks and misled investors in its sale of $850 million of mortgage bonds during 2008.
The Justice Department filed a lawsuit Tuesday against the bank and several subsidiaries in federal court in Charlotte, N.C., where Bank of America is based. The Securities and Exchange Commission filed a related lawsuit against Bank of America there, too.
Bank of America disputed the allegations.
In other news
THE COMMERCE Department said Tuesday that the U.S. trade gap fell more than 22 percent in June from May to $34.2 billion. That’s the lowest level since October 2009. Exports rose 2.2 percent to an all-time high of $191.2 billion. Imports declined 2.2 percent to $225.4 billion.
U.S. HOME PRICES surged 11.9 percent in June from a year earlier, reflecting stronger demand amid a tight supply of homes for sale. CoreLogic, a real estate data provider, said Tuesday that home prices climbed in 48 states.
GENERAL MOTORS IS knocking 13 percent off the sticker price of the Chevrolet Volt electric car as it tries to keep pace with rivals. The automaker said Tuesday that the 2014 Volt will start at $34,995, including shipping – $5,000 less than the current model.
SONY’S BOARD HAS unanimously rejected U.S. hedge fund manager Third Point’s proposal that it sell part of its entertainment business.