Bank of America and the Securities and Exchange Commission defended a settlement over the bank’s failure to disclose details about Merrill Lynch’s bonuses ahead of a shareholder vote on the merger, according to The New York Times. Bank of America said in its court filing that it behaved properly. The SEC said the settlement was the result of an “arms-length negotiation.” Federal District Court Judge Jed. S. Rakoff of Manhattan said the bank’s $33 million settlement with the commission seemed “strangely askew.” He questioned the SEC’s decision to charge the bank at the corporate level rather than individual executives. “I cannot ignore issues of responsibility,” Judge Rakoff said at the hearing on Aug. 10. “Was there some sort of ghost that performed those actions?” Both parties will have two weeks to respond to each other’s filings. If Rakoff doesn’t approve, then SEC is expected to drop the case.
Update: BofA Defends SEC Settlement
Bank of America and the Securities and Exchange Commission prepare to defend their $33 million settlement.
August 24, 2009