WASHINGTON — Bank of America Securities LLC, now Bank of America Merrill Lynch, agreed to pay more than $137 million, as well as to take remedial steps, in unprecedented enforcement actions announced Tuesday to settle charges from four federal securities, banking, and tax regulators — as well as 20 state attorneys general — over its participation in a scheme to rig bids for muni reinvestment contracts between 1997 and 2005.

The Securities and Exchange Commission, Internal Revenue Service, Office of the Comptroller of the Currency, Federal Reserve, and attorneys general all collaborated with the Justice Department in parallel civil and criminal cases and federal officials made clear Tuesday that their collaboration is ongoing. Probes of widespread wrongdoing in the muni market will likely result in many further enforcement actions against other investment banks, brokers, and providers of investment agreements and individuals, the regulators said.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.