Morning Scan: B of A Tapped Retail Unit for Risky Trades; Disclosure...

Wall Street Journal

Bank of America used federally insured retail deposits to finance risky trades by its European investment banking unit, the paper reports. The bank says it no longer engages in the practice, which is aimed at helping hedge funds and other clients avoid taxes. Regulators had previously questioned Bank of America about the reputational and legal risks associated with dividend arbitrage, and now a bank employee has made whistleblower submissions to the Securities and...