Pa. Agencies, Governments Settle With Bank Of America
HARRISBURG (CBS) – Pennsylvania governments and agencies are in line for millions of dollars as the result of a state and federal settlement of charges that Bank of America rigged bids and engaged in other anti-competitive actions.
Pennsylvania attorney general spokesman Nils Frederiksen says it’s alleged that the case involved bids for investments that were placed by government and non-profit organization agencies, many of whom issued bonds to raise money for construction and other projects.
Frederiksen says, “And typically, they’ll look to invest a portion of that money that they don’t need right away in shorter term investments to earn an extra rate of return. Because these bids were being rigged, these local governments and municipal organizations were earning a lower rate of interest and paying higher fees than they should have.”
Montgomery County, Chester County, the city of Philadelphia, SEPTA, Philadelphia International Airport, and the Pennsylvania Turnpike Commission are among the entities that may be in line for restitution.
Reported by Tony Romeo, KYW Newsradio