Federal judge allows SEC case against Bank of America to go forward

A federal judge on Thursday allowed a Securities and Exchange Commission lawsuit against Bank of America to go forward, in a case that alleges fraud in the sale of bonds backed by millions of dollars in home loans. U.S. District Judge Max Cogburn also ruled on a related case brought by the U.S. Department of Justice. A federal magistrate judge had recommended dismissal of that suit, but on Thursday Cogburn granted the department 30 days to file an amended version. The suits were both filed last August in federal court in Charlotte. The SEC and DOJ alleged the Charlotte-based bank concealed information from investors about the risks of the loans that were packed into securities. More in the Charlotte Observer here.