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California reportedly subpoenas BofA over toxic securities

California is trying to determine whether BofA and its Countrywide Financial subsidiary sold investments backed by risky mortgages to investors in California under false pretenses, a source says. Investigators with the state attorney general's office have subpoenaed Bank of America Corp. in connection with the sale and marketing of troubled mortgage-backed securities to California investors, according to a person familiar with the probe.

Senh: Citigroup already got nailed. It's time for Bank of America and other banks. This is just wrong - peddling investment products to their clients while betting against them.

BofA's Countrywide sued, accused of massive fraud

Bank of America Corp's Countrywide mortgage unit has been sued by investors claiming they were victimized in a "massive fraud" when they bought mortgage-backed securities.

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