Dance partners Bank of America and FleetBoston Financial, whose merger is days away from a shareholder vote, yesterday to a $675 settlement, which will also see eight members of BoA’s Nations Funds board step down and the firm exit the securities clearing business. It is the largest settlement to date in the ongoing fund investigation.

In an agreement with the Securities and Exchange Commission, Bank of America agreed to pay a total of $375 million ¾ $250 million of that in disgorgement and $125 million in penalties. Additionally, FleetBoston agreed to a $140 million settlement with the SEC for impropriety at two of its Columbia units.

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