Hoping to gain status in securities underwriting and get in on the tech boom, BofA bought Montgomery Securities in 1997, only to have its leader, Thomas Weisel, noisily decamp to form his own shop.
So among his mandates is to search out a joint venture with a Chinese securities partner that would allow BofA Merrill Lynch to underwrite IPOs in China.
Those securities soured and have resulted in a plethora of losses for investors who have turned around and sued BofA accusing the bank of misleading them about the quality of the investments.