[ by Melanie Gretchen ]

Bank of America can't catch a break.  After its shares recovered from hitting a low in May, the Charlotte, North Carolina-based bank disclosed it is being investigated by New York Attorney General Eric Schneiderman.  At issue are its mortgage practices, specifically how BofA originated and packaged home loans for sale to investors.

The $3.1 billion in penalties would add to the amount, about $47 billion, the bank has already paid in fines and settlements related, in part, to its ill-fated 2008 acquisition of Countrywide Financial that saddled it with billions in toxic home loans.  That includes last month's $11.7 billion payment to government-backed mortgage giant Fannie Mae.  Since May, when shares hit $6.83, Warren Buffett resuscitated it with an infusion of $5 billion toward a recovery by BofA of some 66% to $11.34.

Going forward, BofA said is it cooperating with the AG probe.

[C-I Note: Is this the aftermath of the financial crisis or the legacy of former CEO Ken Lewis whose costly mergers are still defining the bank after his 2008 departure?]

For further details, go to [NY Post, 3/2/13].