Bank of America Securities Settles Market Manipulation Probe

The U.S. Justice Department announced a resolution with Bank of America Securities, concluding a criminal investigation into former employees' market manipulation. The bank will not face prosecution, but it will disgorge $1.96 million and contribute $3.6 million to a victim compensation fund it will manage.

Devdiscourse News Desk | Washington DC | Updated: 18-09-2025 23:54 IST | Created: 18-09-2025 23:54 IST

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Bank of America Securities has reached a settlement with the U.S. Justice Department, resolving a criminal investigation concerning alleged market manipulation by former employees. The financial institution has managed to avoid prosecution through this agreement.

As part of the resolution disclosed on Thursday, Bank of America Securities will disgorge approximately $1.96 million. In addition to the disgorgement, the firm is also set to contribute around $3.6 million to a victim compensation fund, which it will establish and oversee.

This decision by the Justice Department allows the bank to conclude the investigation without facing formal charges, signaling a pivotal resolution in the broader case concerning market manipulation practices.

(With inputs from agencies.)