Sep. 25–The S.C. Treasurer has expressed concern to Bank of America Corp. about an investigation into trading of the bank’s mutual funds but hasn’t made changes to the state’s 529 college savingsplan, which is managed by the Charlotte bank.

Treasurer Grady Patterson “has spoken with Bank of America officials and is reviewing the situation,” Trav Robertson, a Patterson spokesman, said Wednesday.

The treasurer is waiting until New York Attorney General Eliot Spitzer completes his investigation before taking any action, Robertson said. Patterson spoke with bank officials last week.

State 529 plans, named after a section of the U.S. Tax Code, are a popular way for parents and others to save money for college tuition. States typically outsource the management of the programs to banks and brokerage firms.

South Carolina’s plan has $180 million in assets and includes 21 Bank of America Nations Funds mutual funds as investment options, a bank spokeswoman said. South Carolina has the only 529 plan managed by the bank, which has run the program since 2002 and has a 10-year contract.

Earlier this month, Spitzer reached a $40 million settlement with Canary Capital Partners, a New Jersey hedge fund, over allegations that the company engaged in improper trading practices with four mutual fund families. Spitzer alleged Bank of America had the most extensive trading relationship with Canary.

Last week, he charged a former Bank of America broker with making illegal late trades with Canary and said more charges were possible in a widening probe of the $6.9 trillion mutual fund industry. Bank of America has not been charged with wrongdoing.

Bank of America has dismissed several employees and has launched its own probe. It has promised to reimburse investors who lost money from improper trading.

Bank of America spokeswoman Alexandra Trower said the bank has been in close contact with the S.C. Treasurer.

“We greatly value our relationship with the state of South Carolina and its 529 participants,” Trower said.

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To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotte.com.

(c) 2003, The Charlotte Observer, N.C. Distributed by Knight Ridder/Tribune Business News.

BAC,

Sep. 25–The S.C. Treasurer has expressed concern to Bank of America Corp. about an investigation into trading of the bank’s mutual funds but hasn’t made changes to the state’s 529 college savingsplan, which is managed by the Charlotte bank.

Treasurer Grady Patterson “has spoken with Bank of America officials and is reviewing the situation,” Trav Robertson, a Patterson spokesman, said Wednesday.

The treasurer is waiting until New York Attorney General Eliot Spitzer completes his investigation before taking any action, Robertson said. Patterson spoke with bank officials last week.

State 529 plans, named after a section of the U.S. Tax Code, are a popular way for parents and others to save money for college tuition. States typically outsource the management of the programs to banks and brokerage firms.

South Carolina’s plan has $180 million in assets and includes 21 Bank of America Nations Funds mutual funds as investment options, a bank spokeswoman said. South Carolina has the only 529 plan managed by the bank, which has run the program since 2002 and has a 10-year contract.

Earlier this month, Spitzer reached a $40 million settlement with Canary Capital Partners, a New Jersey hedge fund, over allegations that the company engaged in improper trading practices with four mutual fund families. Spitzer alleged Bank of America had the most extensive trading relationship with Canary.

Last week, he charged a former Bank of America broker with making illegal late trades with Canary and said more charges were possible in a widening probe of the $6.9 trillion mutual fund industry. Bank of America has not been charged with wrongdoing.

Bank of America has dismissed several employees and has launched its own probe. It has promised to reimburse investors who lost money from improper trading.

Bank of America spokeswoman Alexandra Trower said the bank has been in close contact with the S.C. Treasurer.

“We greatly value our relationship with the state of South Carolina and its 529 participants,” Trower said.

—–

To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotte.com.

(c) 2003, The Charlotte Observer, N.C. Distributed by Knight Ridder/Tribune Business News.

BAC,

Sep. 25–The S.C. Treasurer has expressed concern to Bank of America Corp. about an investigation into trading of the bank’s mutual funds but hasn’t made changes to the state’s 529 college savingsplan, which is managed by the Charlotte bank.

Treasurer Grady Patterson “has spoken with Bank of America officials and is reviewing the situation,” Trav Robertson, a Patterson spokesman, said Wednesday.

The treasurer is waiting until New York Attorney General Eliot Spitzer completes his investigation before taking any action, Robertson said. Patterson spoke with bank officials last week.

State 529 plans, named after a section of the U.S. Tax Code, are a popular way for parents and others to save money for college tuition. States typically outsource the management of the programs to banks and brokerage firms.

South Carolina’s plan has $180 million in assets and includes 21 Bank of America Nations Funds mutual funds as investment options, a bank spokeswoman said. South Carolina has the only 529 plan managed by the bank, which has run the program since 2002 and has a 10-year contract.

Earlier this month, Spitzer reached a $40 million settlement with Canary Capital Partners, a New Jersey hedge fund, over allegations that the company engaged in improper trading practices with four mutual fund families. Spitzer alleged Bank of America had the most extensive trading relationship with Canary.

Last week, he charged a former Bank of America broker with making illegal late trades with Canary and said more charges were possible in a widening probe of the $6.9 trillion mutual fund industry. Bank of America has not been charged with wrongdoing.

Bank of America has dismissed several employees and has launched its own probe. It has promised to reimburse investors who lost money from improper trading.

Bank of America spokeswoman Alexandra Trower said the bank has been in close contact with the S.C. Treasurer.

“We greatly value our relationship with the state of South Carolina and its 529 participants,” Trower said.

—–

To see more of The Charlotte Observer, or to subscribe to the newspaper, go to http://www.charlotte.com.

(c) 2003, The Charlotte Observer, N.C. Distributed by Knight Ridder/Tribune Business News.

BAC,