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Massachusetts subpoenas Bank of America documents over collateralized loan valuations

Feb 13 2012 Reuters

Massachusetts securities regulators said on Friday that they were subpoenaing Bank of America Corp for documents to determine whether the lender had knowingly overvalued assets in some investment products. Local investors lost about $150 million in investment vehicles structured by the company's affiliate Banc of America Securities LLC, said William Galvin, the state's top securities regulator. Now his office is asking the Charlotte, North Carolina-based bank to supply documents for its activities involving collateralized loan obligations. The CLOs include LCM VII Ltd and Bryn Mawr CLO II Ltd, which were structured by the bank and sold to investors in 2007. Bank of America spokesman Bill Halldin said the bank doesn't comment on regulatory inquiries, except to say that it cooperates fully with them. Galvin, who has been especially aggressive in looking into how big banks hurt small investors during the housing crisis and financial crisis, said he

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