NEW YORK (
) -- Divisions of
Bank of America
were fined for misrepresenting data tied to mortgage securities, the Financial Industry Regulatory Authority (FINRA) announced Thursday.
Credit Suisse's U.S. securities arm was fined $4.5 million "for misrepresenting delinquency data and inadequate supervision in connection with the issuance of residential subprime mortgage securitizations (RMBS)," according to a FINRA press release.
Bank of America's Merrill Lynch unit "negligently misrepresented the historical delinquency rates for 61 subprime RMBS it underwrote and sold," the press release states.
In the case of both banks, the errors overstated the delinquencies in some instances and understated them in others.
"We are pleased to resolve this matter, which pre-dated Bank of America's acquisition of Merrill Lynch. Merrill Lynch identified this problem and corrected it by September 2007,"wrote a Merrill Lynch spokesman via email.
Credit Suisse declined to comment.
Written by Dan Freed in New York
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