Cuomo: Merrill Misled Congress on Bonuses

Firms paid more than they made: Cuomo

(NEWSER) - The financial crisis and government bailouts did little to change Wall Street’s executive compensation habits, New York's attorney general says. All nine banks given assistance by TARP paid out bonuses in 2008—well before any paid back government loans, according to a survey ordered by Andrew Cuomo. Goldman Sachs, Morgan Stanley, and JPMorgan Chase actually paid more in bonuses than the firms made for the year, the Wall Street Journal reports. More»

Subpoena issued after CEO's grilleing by Merrill bonus probe

(NEWSER) - Bank of America CEO Kenneth Lewis has been ordered to hand over a full list of Merrill Lynch execs who received bonuses just before the bank took over the company, reports Reuters. Lewis was grilled for hours yesterday in the offices of New York AG Andrew Cuomo, who's looking into $3.6 billion in bonuses handed out ahead of the government-backed merger. More»

Cuomo expands probe into Merrill's handling of pre-takeover handouts

(NEWSER) - New York Attorney General Andrew Cuomo is considering action ordering the return of $4 billion in early bonuses Merrill Lynch handed out to staff just before its bailout-backed takeover by Bank of America, an insider tells Bloomberg. Cuomo has widened his probe into the bonuses and aims to find out how much Bank of America's chief knew about the accelerated bonuses and whether bailout funds were misused. More»

(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»

Fired Merill CEO tries to 'set the record straight' about $3.6B payout

(NEWSER) - In his first lengthy interview since being pushed out as CEO of Merrill Lynch, John Thain tells the Wall Street Journal that Bank of America—which acquired Merrill in September—is lying about its involvement in the $3.6 billion in bonus payouts that made Thain the poster boy for corporate greed. “Getting fired is one thing,” Thain said. “But nobody has the right to say things that they know aren't true.” More»