AG Andrew Cuomo Subpoenas Thain over Merrill Bonuses

[SuperTrouper]

http://news.yahoo.com/s/ap/20090127/ap_on_bi_ge/bank_of_america_merrill_lynch


NEW YORK – The New York attorney general on Tuesday issued subpoenas to former Merrill Lynch chief executive John Thain and Bank of America's chief administrative officer, J. Steele Alphin, amid an investigation into bonuses Merrill paid executives just before being sold to Bank of America.

Thain, 53, was serving as the head of the newly combined company's wealth management division before he resigned last week. The resignation came shortly after reports surfaced that billions of dollars were paid to Merrill executives in late December.

Those bonuses were paid as Merrill was about to report a $15 billion fourth-quarter loss, and while Bank of America was seeking more federal funds to help it absorb the mounting losses at the New York-based investment bank.

Attorney General Andrew Cuomo's investigation will center on trying to determine why the timetable for paying the bonuses was moved up to December from its normal period in January; who knew about the bonuses; and how Merrill could justify spending billions of dollars on bonuses knowing its was on the brink of reporting a multibillion loss for the quarter, a person familiar with the probe told The Associated Press. The person spoke on condition of anonymity because the investigation is ongoing.

[MassNssen]

1. I've read somethging about this.

I've read somethging about this.

[frazzled]

2. Definitely a sign he'll run against Gillebrand, methinks

Not that this isn't something that the AG shouldn't do anyway, but it seems perfectly suited to a great strike-while-the-iron's-hot media blitz. Good for him.

[SuperTrouper]

3. I thought the same thing, but not against Gilli but against Paterson.

[BattyDem]

4. My thought as well.

He's going up against Paterson.

[Muttocracy]

5. At least we've had some great Atty Gens lately :)