FAI: A bunch of Bank of America customers lost $1.2 million after putting a big chunk of money in Puerto Rico


puerto rico

Ricardo Arduengo/AP

A homeless man improvises his shoes with pieces of cloth in front of a closed down business in Puerta de Tierra in the outskirts of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015.

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The Financial Industry Regulatory Authority said on Wednesday it fined Bank of America Merrill Lynch $7 million for inadequate supervision of client brokerage accounts that used leverage to buy Puerto Rican municipal bonds and other securities.

FINRA said that 25 customers with modest net worth had three-quarters of their portfolios invested in Puerto Rican securities and lost a total of $1.2 million.

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