(Adds details, quote from complaint, Bank of America lawyer
WASHINGTON Jan 9 A banking regulator on Monday
sued Bank of America Corp over $542 million in deposit
insurance that it said the second-largest U.S. bank "refuses to
The Federal Deposit Insurance Corporation (FDIC) charges
banks a fee to protect customer deposits. The largest financial
companies must pay more for that protection.
"Bank of America underreported its counterparty exposures by
tens of billions of dollars," the complaint filed in federal
court in Washington said.
Specifically, the FDIC points to "counterparty risk" or the
danger that another leading financial firm could fail and cost
Bank of America. No other leading lender has understated its
counterparty risk as did Bank of America, the complaint said.
Lawyers for the bank said they expected to prevail in court.
Michael Krimminger, a lawyer for Cleary Gottlieb who is
representing the Charlotte-based bank, said the dispute
concerned the interpretation of technical rules governing the
"In my view, the FDIC's position in this instance is
erroneous," he said.
The FDIC declined to comment.
(Reporting by Patrick Rucker in Washington; additional
reporting by Dan Freed in New York; Editing by Grant McCool)