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Probes yet Again at Bank of America

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Shares of Bank of America Corp (NYSE:BAC) are slightly down this morning on news that both the Justice Department and the Commodity Futures Trading Commission are opening investigates on the bank’s trading practices. The focus of the investigation involves Fannie Mae and Freddie Mac mortgage swaps. Both federal agencies are alleging that swap traders at the bank engaged in front running of orders, which is basically executing orders ahead of your clients. Unfortunately, it seems like the bank is constantly under investigation. The moment you think the bank has a handle over their legacy issues, something resurfaces.