Bank of America Corp (NYSE:BAC) to cough-up fine in racial discrimination case


Dallas, Texas 09/24/2013 (Financialstrend) – Bank of America Corp (NYSE:BAC) has been ordered by a United States Department of labor Judge to pay up almost $2.2 million as compensation for Racial Discrimination against over 1,000 job seekers who are black. Judge Linda S. Chapman ordered the bank to pay the black-applicants $ 2,181,593 as back-wages plus interest, for race-based discrimination in hiring at its Charlotte unit.

Job rejections

In 1993, 1,034 applicants had been rejected for jobs. This ruling now awards $964,033 to these applicants. In addition, an amount of $1,217,560 has been awarded to 113 applicants who had been rejected from 2002-2005. Apart from this, the ruling has ordered the bank to put forth job offers with the requisite seniority of position to 10 people who had been included in this class-action. This will have to be actioned as soon as those positions are available.

Unfair hiring process

The judge said that Bank of America Corp (NYSE:BAC) had used criteria that was inconsistent and unfair while they were selecting candidates during the hiring process.
Consequently, qualified black-applicants who had applied for entry-level clerical, teller and administrative positions at the bank, were rejected.

The filing stated that Bank of America Corp (NYSE:BAC) had violated the United States Executive Order 11246. This order prohibits federal-contractors from any kind of race discrimination with employment practices.

Monday’s trading

In Monday’s trading Bank of America Corp (NYSE:BAC) stock dipped by 2.08%. The shares opened at a price of $14.31 which rose to an intraday high of $14.32 and dropped to a close of $14.14. Around 0.110M shares were traded in Monday’s session. An average-volume of 83.70M shares was traded over 30 days. The shares have a 52-week low of $8.70 and their 52-week high stands at $83.70. Bank of America Corp (NYSE:BAC)’s market capitalization is $151.91 billion.