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| Economy |
| Fed Judge Rejects SEC/Bank of America Settlement as 'cynical' |
| 2009-09-15 |
| The Federal District judge said that Bank of America [BofA] "materially lied" in shareholder communications about the $3.6 billion in bonuses paid to Merrill Lynch executives just before BofA took over Merrill last year. The $33 million settlement "does not comport with the most elementary notions of justice and morality," the judge wrote. He focused his criticism on the fact that BofA shareholders would be the ones to bear the expense of the settlement, although they were actually the ones injured. This is just the tip of the iceberg. |
| Posted by:Anguper Hupomosing9418 |
| #3 I think the SEC will drop the matter. |
| Posted by: Eric Jablow 2009-09-15 21:19 |
| #2 Interesting. While companies and hence shareholders are liable for the actions of company officers, this normally doesn't extend to illegal acts. Sounds like the judge wants to go after the company officers as individuals. |
| Posted by: phil_b 2009-09-15 20:20 |
| #1 Now the case will go to trial, and I suspect some interesting internal communications of BofA will be subpoenaed that will come to public attention. Yesterday Wells Fargo bank fired an executive for throwing parties at an expensive Malibu house it had taken by foreclosure, from victims of Bernie Madoff's Ponzi scheme no less, and at the same time refused to show the home to interested potential buyers. See here. Neither of these issues are 'control fraud' issues which, in my opinion, are one of the primary causes of the current financial crisis. But they do amply display the contempt many banking executives have for the general public and for ethical banking and business standards. |
| Posted by: Anguper Hupomosing9418 2009-09-15 01:17 |