Bank of America Corp. said in a filing Thursday that mortgage lender Countrywide Financial Corp., which it bought July 1, faces a formal investigation by the Securities and Exchange Commission.
The Charlotte bank did not disclose any details of the probe. The lender, a major player in the nation's subprime mortgage mess, also is the subject of lawsuits by state and local governments and a reported FBI investigation.
In the quarterly filing, Bank of America also disclosed:
-- a settlement agreement with the Internal Revenue Service resolving all matters related to an audit of the 1998 and 1999 tax returns of the bank's 401(k) and pension plans.
The audit had looked at the voluntary transfer of assets into the pension plan from the 401(k) plan. Under the agreement, assets will be transferred to a 401(k) plan.
-- a U.S. Court of Appeals ruling involving controversial leasing tax shelters will not have a “significant impact” on its financial situation. Some banks, including Charlotte's Wachovia Corp., took earnings hits in the second quarter because of the ruling. The bank said it's evaluating an IRS settlement program but hasn't received an official communication from the agency.
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