BofA says it took hit in Parmalat crash

Bank of America Corp. said it lost about $450 million from the bankruptcy of Parmalat after relying on "fraudulent misrepresentations" made by the Italian dairy company. The Charlotte, N.C.-based bank said the loss came after the company collapsed under $18 billion of debts in 2003. Bank of America represented Parmalat in nearly all of the U.S. private placements, according to the indictment. The company's collapse was Europe's largest corporate failure, according to MarketWatch. Parmalat, which emerged from bankruptcy protection in 2005, has sued Bank of America for damages in federal court in New York. As part of efforts to recoup losses, the bank has filed a counterclaim seeking more than $1.3 billion in damages. In a statement released today, the Bank of America expressed "great sympathy" for the losses of Italian investors resulting from the case. "It will take a great deal of time before Bank of America is able to recoup those losses for our own shareholders through our continuing business in your country."