Bank of America and federal regulators will defend their case for a $33 million settlement before a U.S. District Court Judge Jed Rakoff refused to give his approval on the deal, reports CNNMoney. The Securities and Exchange Commission reached the agreement last week after it filed charges against the bank for allegedly misleading investors concerning billions of dollars in pay bonuses paid to Merrill Lynch executives. Rakoff’s ruling is not surprising as much of the settlement raises questions. “The SEC must have wanted a quick settlement,” said John Coffee, professor of law at Columbia University. “Judge Rakoff has done exactly the right thing.” The news conerning Merrill Lynch’s settlements came to light after New York Attorney General Andrew Cuomo accused the firm of “secretly” rewarding executives before its merger with BofA concluded.
BofA and SEC Defend $33M Agreement
Bank of America and the Securities and Exchange Commission prepare to defend over $33 million in executive pay bonuses paid out to Merrill Lynch executives.
August 10, 2009