BofA Warns of SEC Action in Trading Probe

Bank of America Corp. disclosed Tuesday that the Securities and Exchange Commission might recommend enforcement action against its securities unit regarding a trading- and research-related probe.

The SEC’s investigation into Banc of America Securities is continuing, the company said in its annual report issued Tuesday. A year ago, the bank first disclosed the matter, which focuses on activities that occurred from 1999 to 2001.

Bank of America was fined a record $10 million by the SEC last March for failing to provide documents the agency requested during a probe into claims that a Banc of America Securities executive traded on unreleased research reports from the firm’s own analysts.

In December 2003, the NASD fined a former Banc of America Securities analyst for publishing research that conflicted with his personal views and for giving advance notice of his recommendations to favored clients.

The NASD said at the time that its probe was continuing.