SEC Going After Bank of America For Lying to Shareholders, Again


The SEC plans to file new charges against Bank of America for lying to shareholders in 2008. This follows a suit from a few months back for lying to shareholders about $5.8 billion in bonuses it paid employees of Merrill Lynch, which Bank of America bought after Hank Paulson put Ken Lewis in a headlock.

The new allegations are that Bank of America failed to tell shareholders about enormous loses at Merrill Lynch before they voted on whether the two firms should merge. The SEC was hoping to add these charges to the previous suit but U.S. District Judge Jed Rakoff denied the request, forcing the SEC to file a separate suit. Like with the previous charges, the SEC has decided not to accuse any individuals of wrongdoing, a move that’s sure to piss off Rakoff and, maybe, get him to quote some more Oscar Wilde.

S.E.C. Seeks New Charge Against Bank of America [Dealbook/NYT]