Jessica M. Karmasek Mar. 4, 2013, 3:15pm

NEW YORK (Legal Newsline) -- One of the nation's largest banks, Bank of America, is reportedly under investigation by New York Attorney General Eric Schneiderman.

The investigation was brought to light in public filings last week, according to the New York Post.

Bank of America told the Post on Friday that the attorney general's investigation into its mortgage practices could cost it more than $3 billion in penalties.

Last year, Schneiderman was named to a working group created by President Barack Obama that operates as part of the federal government's Financial Fraud Enforcement Task Force.

The working group, formed last year, brings together federal, state and local agencies, including the U.S. Department of Housing and Urban Development, FBI, IRS, the Consumer Financial Protection Bureau, the Financial Crimes Enforcement Network and the Federal Housing Finance Agency Office of Inspector General.

The group is tasked with investigating those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities.

According to the Post, Bank of America has already paid out more than $40 billion in fines and settlements as a result of -- at least, in part -- its buying Countrywide Financial in 2008. Countrywide had issued hundreds of troubled mortgage pools leading up to the financial crisis.

A spokesman for Bank of America told the newspaper it was cooperating with Schneiderman's probe -- which is looking at how the bank originated and packaged its home loans for sale to investors -- but would not comment further.

From Legal Newsline: Reach Jessica Karmasek by email at

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