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Thursday, February 5, 2015

India's Sahara says bank letter underpinning rescue deal was forged, (NYSE: BAC)

Indian conglomerate Sahara Group said on Thursday that a letter intended to support a $2 billion transaction with a U.S.-based former broker was forged, dealing a major setback to the group's efforts to secure bail for its jailed boss, Subrata Roy.The statement came a day after Reuters reported evidence that Saransh Sharma, a California man who was leading the deal through his company Mirach Capital Group, didn't have the money to pull off the transaction. A manager at Bank of America told Reuters he didn't write a crucial letter, attributed to him, which purported to verify the existence of a billion-dollar bank account.Sharma had said he was backed by a group of U.S. and U.K. investors for the deal, whom he declined to name, and said they were the source of funds supposedly placed in the Bank of America account.Roy, a maverick businessman who during his heyday socialized with presidents and film stars, has been held at a New Delhi jail since March on contempt charges, after he failed to comply with a court order to repay investors in a bond scheme that was later ruled to be illegal. Roy is being held on $1.6 billion bail, the largest ever in India.

Bank of America Corporation (Bank of America) is a bank holding company and a financial holding company. Shares of BAC traded higher by 1.27% or $0.2/share to $15.99. In the past year, the shares have traded as low as $14.37 and as high as $18.21. On average, 81245904 shares of BAC exchange hands on a given day and today's volume is recorded at 49710680.