Prudential Sues Bank of America for ‘Racketeering’ – TheStreetNEW YORK ( TheStreet) — Prudential Financial has sued Bank of America , alleging the bank and Merrill Lynch engaged in “racketeering” in connection with mortgage-backed securities sales, according to a Reuters blog post. Prudential spokesman Bob DeFillippo confirmed the insurer “did bring an action against Bank of America that concerns residential mortgage backed securities,” but offered no further comment.