SEC Charges Bank of America With Lying to Investors

[cal04]

Source: Washington Post

The Securities and Exchange Commission on Monday charged Bank of America with lying to investors about its plan to pay billions of dollars in bonuses to employees of Merrill Lynch.

Bank of America, which bought the ailing investment bank this year, agreed to settle the charges and pay a $33 million penalty, according to the SEC. The company did not admit or deny wrongdoing.

The agency alleged that Bank of America violated securities law by telling investors in a November 2008 filing that bonuses would not be paid without its consent.

"In fact, Bank of America had already contractually authorized Merrill to pay up to $5.8 billion in discretionary bonuses to Merrill executives for 2008," the SEC said in a statement. "The disclosures in the proxy statement were rendered materially false and misleading by the existence of the prior undisclosed agreement allowing Merrill to pay billions of dollars in bonuses for 2008."

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/08/03/AR2009080301165.html?hpid=topnews

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BofA pays $33M SEC fine over Merrill bonuses
http://news.yahoo.com/s/ap/20090803/ap_on_bi_ge/us_bank_of_america_sec

[dixiegrrrrl]

1. It's a start. I would prefer annihilation, but.........

[Demeter]

2. It's More Like Suicide

and well-earned, too.

[Vidar]

7. My feelings as well.

[Xipe Totec]

3. 33 million in fines? That's 0.6% of the money paid out in bonuses

No wonder they didn't even flinch.

[metapunditedgy]

5. Sounds like they just needed to give another bonus or two to SEC management.

And they could pay it with leftover change from the BofA/Merrill execs.

And this SEC action accomplishes what besides a feel-good headline?

[midnight]

4. I'm recommending this. I want everyone to see how the wealthy

are protected, yet the lies the banks told and caused many homeowners is being sold as irresponsible consumerism.

[damntexdem]

6. Isn't that like charging Hollywood with producing movies?

;-)