Tomahawk, WI 9/24/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) remains one of the largest banks in the U.S, despite the many challenges it has faced to stay profitable. This bank continued to struggle since the financial crisis of 2008, and the situation appears not to have changed by much even after other large banks in the U.S reported good times in their financial results. As a banking and financial holding company, its market cap of more than $151 billion, ensures that it can’t be completely written off just yet. Lately, the company has been forced to answer to several legal suits.

 BAC Invests in Coal Industry

 For a company of BAC’s size, lawsuits come with the territory. However, when this happens on a regular basis, investors may start growing concerned bearing in mind that the bank is yet to recover fully and it still doesn’t enjoy the sort of public confidence it needs. The bank doesn’t only need to contend with lawsuits, but its recent inclusion in the sustainability list has led to a massive outcry and several complaints raised by NGOs, and other watch bodies. NGOs have   problems with the bank’s decision to support the coal industry, which damages the environment.

 The impact of coal on public health and environment has caused such hue and cry that BAC cannot say it has not seen them, or is unaware of these complaints. The bank has often stated that it is willing to lend support to any effort geared towards ensuring sustainability. However, it is yet to prove that it is truly ready to put its money where its mouth is. The bank, on the other hand, has invested more than $6.4 billion in a period of two years to the coal industry in India. This is what has convinced many that it doesn’t need to be included in the sustainability list.

BAC facing More Than One Lawsuit

 In terms of lawsuits, the bank is facing several of them. It has been accused of discrimination against female brokers as well as denying blacks employment within its facilities while there was vacancy.  These two cases have cost the bank close to $40 million which the courts have asked it to pay to the victims who filed these cases. The case regarding race bias has been going on for many years, even decades but has now been concluded and the bank was found guilty and asked to pay $2.2 million to some of these who were denied opportunities between 1993 and 2001.

 The other case which has been determined, saw BAC being accused by female brokers of  paying them less than what their male counterparts were receiving without justifiable cause. At the end of the case, BAC agreed with the close to 4,800 former and current financial advisors working with the bank, and this group also contains some trainees, that they would be paid around $39 million. This lawsuit affected BAC directly as well as Merrill which it had purchase in 2009. All those who are affected by the low pay are eligible to receive part of this award.

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