The firm mismanaged its $3.4 billion 401(k) plan by overpaying for administrative services and misusing money forfeited by former employees, the class-action lawsuit alleges.
"The predominant risk at this point is that the softening in the labor market gains momentum and the economy tips into an unnecessary and unwanted recession."
BofA employees filed a lawsuit last week alleging that the company mismanaged its 401(k) plan by using assets forfeited by former workers for its own financial benefit.
According to Fed data, the net proportion of U.S. banks that tightened standards on commercial and industrial loans for midsize and large businesses fell to 7.9 percent—the lowest since 2022.
Even as relative calm has returned in recent days, the likelihood of further shakeouts in currencies and equities, and simmering economic risks, support the case for bonds.
Initial claims fell by 17,000 last week, in part because of a drop in Michigan, Missouri, and Texas, states that had registered large increases in unemployment applications in prior weeks.
