BofA Settles SEC Suit Over Merrill Bonuses for $33M

FBI, Justice Department investigate timing of bonus payments: source

(NEWSER) - Bank of America's acquisition of Merrill Lynch is the focus of an ongoing investigation by the FBI and Justice Department, sources tell the Charlotte Observer, the bank's hometown paper. The SEC and the AGs of New York and North Carolina have already launched civil probes of the timing of huge bonuses paid to Merrill execs shortly before the deal closed; the feds' involvement indicates that criminal charges may also be in play. More»

Bank's $33M fine doesn't do 'justice' to shareholders, public: judge

(NEWSER) - A federal judge today scrapped the $33 million settlement Bank of America and the SEC agreed on as punishment for the bank's not informing shareholders of bonuses paid to Merrill Lynch executives just before the bank bought Merrill, the New York Times reports. Saying BofA "materially lied, " Jed Rakoff noted that the very shareholders who were possibly misled by management would be footing the bill for the settlement. More»

Energy sector leads stocks lower; financials up on BofA settlement

(NEWSER) - Energy issues pushed stocks lower today after indexes hung around opening levels and briefly wandered into positive territory. Bank of America's settlement with the SEC over its acquisition of Merrill Lynch last year boosted financials, the Wall Street Journal reports.

• The Dow fell 18.97 points to close at 10,383.38.
• The Nasdaq lost 1.84, settling at 2,242.03.
• The S&P 500 dropped 1.16 to close at 1,108.01.

(NEWSER) - The judge who has refused to sign off on Bank of America's settlement with the SEC over $3.6 billion in bonuses paid to Merrill Lynch delivered a stinging rebuke to both parties in a hearing yesterday, the New York Times reports. The firms "effectively lied to their shareholders" over the pre-merger bonuses, and the SEC's proposed $33 million settlement seems "strangely askew," said Judge Jed Rakoff. More»

$33M deal with SEC raises questions of fairness; hearing set

(NEWSER) - Bank of America won't be able to quietly settle the flap over bonuses for Merrill Lynch execs with a simple $33 million payout to the SEC, a federal judge ruled yesterday. Judge Jed Rakoff refused to sign off on the settlement, saying that doing so would leave the public in the dark over whether the bank lied to shareholders and whether the $5.8 billion in bonuses it approved came from bailout funds. He scheduled a Monday hearing on the matter, Reuters reports. More»