BofA skips Congress deadline, faces new SEC threat

[UpInArms]

Source: Reuters

WASHINGTON/NEW YORK (Reuters) - Bank of America failed to meet a Monday deadline to hand lawmakers further details about its acquisition of Merrill Lynch and faces the possibility of new charges from U.S. securities regulators.

The standoff with the House oversight committee heightened the chances lawmakers may subpoena the bank and raised the stakes for a Tuesday meeting between a senior bank executive and the committee chairman.

Separately, the Securities and Exchange Commission said it could pursue additional charges against Bank of America after a federal judge last week rejected a $33-million settlement between the bank and the regulator.

An SEC statement made no mention of dropping the case that alleges Bank of America misled investors over bonuses paid to Merrill Lynch employees. "We believe that this disclosure failure violated the federal securities laws," the agency said.

Bank of America is defending itself on multiple fronts over the Merrill deal, including shareholder lawsuits and a threat by New York Attorney General Andrew Cuomo to file civil charges against top executives.

Read more: http://www.reuters.com/article/businessNews/idUSN2131917220090921?feedType=RSS&feedName=businessNews&sp=true

[Gman]

1. Why does it seem like no one else in the country is trying to do someting except Andrew Cuomo?

Sure seems like it.

[wroberts189]

8. One person ..off the top of my head is about to make a big splash in the pond.

Micheal Moore.

[Gman]

15. Moore as done a lot but

he can't bring charges before a Grand Jury.

[rmp yellow]

2. Meanwhile, Congress passes resolutions against ACORN

talk about weird priorities.

[Hawkeye-X]

3. Shut down BoA, CitiBank and Chase.

Permanently. Let the small banks take over their businesses.

Hawkeye-X

[aquart]

9. Fine by me.

[Vidar]

11. Wonderful idea.

[rpannier]

4. Faces new threat

Yeah...If you don't get those documents to us, we'll threaten you some.

Slap sanctions on them.
Fine them.
Take them over.

Do something substantive

[exboyfil]

6. Actually put them on double secret probation

for all the good it will do.

[bemildred]

5. Time to arrest some executives. Nobody is above the law. nt

[jimlup]

7. bastards just raised my interest rates

I say throw them to the wolves ... that's what they did with me.

[imdjh]

10. Christopher Markowski says Bank Of America and Citibank are insolvent.

[DAMANgoldberg]

13. I can see B of A from my house...

As a takeoff of Sarah Palin. I have had continuous disdain for the formerly "red" bank on the Square, remember No Cash for No Blacks (body) anyone? If we're lucky, one of the buildings on Tryon can be converted to a swanky homeless shelter with catering from the Capital Grille!

[Skink]

12. When was it these guys took Spitzer down before or after?

[No Elephants]

14. B of A has more than $30 million in petty cash. Meanwhile, say hello to Governor Andrew, and my

guess is the Oval Office is next.

First Italian American President, coming up!

[WriteDown]

16. Never happen...

I'm half Sicilian (my father) and if there is one think I've learned, there will never be a president with an Italian last name in my lifetime. Too many stereotypes. You'll hear talk of mafia and eating spaghetti and he'll be turned into a caricature. Burns me up a bit. That is just my opinion though and I hope I am wrong.

[DebbieCDC]

18. I'm with you No Elephants!

[bemildred]

17. SEC to take Bank of America to trial over Merrill Lynch bonuses

Washington - The Securities and Exchange Commission said Monday that it would go to trial against Bank of America Corp. over bonuses at Merrill Lynch, opening the possibility of also bringing charges against bank executives, a week after a judge's stinging rejection of a $33-million settlement of the case.

The SEC said it would "vigorously pursue" its case against BofA, which acquired Merrill in a hastily arranged deal a year ago. The agency had accused the bank of failing to disclose to shareholders that it had authorized Merrill to pay up to $5.8 billion in bonuses.

The SEC has been weighing its options since U.S. District Judge Jed Rakoff called the proposed settlement a breach of "justice and morality" and ordered the case to trial. Another route would have been to try to renegotiate the accord with BofA.

http://www.latimes.com/business/la-fi-bank-of-america22-2009sep22,0,5785639.story