Bank of America to disclose details on Merrill Lynch purchase to SEC
No matter that the outcome of this investigation, it will be a good for Bank of America. This brings them one step closer to getting closure on this very curious situation. If I was a shareholder, I would be very frustrated to learn about these bonuses that were paid out before the merger. As a taxpayer I am very upset that will let taxpayer money in effect, go towards bonuses at a failed institution.
After this issue is resolved, we need to see a realistic repayment plan for the bailouts that both banks received. They can pay bonuses until they are blue in the face, just pay back the people who backed you up even in you should of had to face the music.
AFP, New York - Bank of America agreed to provide new information about bonus payments made to Merrill Lynch executives just before the bank acquired the troubled Wall Street firm last year, officials said Tuesday.
The agreement came after a judge overruled a multimillion dollar settlement between the bank and federal regulators over the controversial bonus issue and ordered the case go to trial.
“We have reached agreement with the Bank of America on proposed terms of a court order governing disclosure of information previously withheld on the basis of legal privileges,” the US Securities and Exchange Commission (SEC) said in a statement.
“If entered by the court, the order would result in a broad waiver of the attorney-client and other legal privileges on matters that are the subject of our pending action against the Bank as well as ongoing investigation,” SEC spokesman John Heine said.
The order would particularly allow the SEC “to assess further details surrounding the bank’s failure to disclose to its shareholders critical information concerning the award of bonuses to Merrill employees, including any relevant information previously withheld.”