BoA CEO Lewis Subpoenaed By NY's AG Cuomo In Merrill Bonus Probe

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BofA's CEO Lewis subpoenaed by Cuomo

BofA's CEO Lewis subpoenaed by New York's Cuomo in probe of Merrill Lynch bonuses

IEVA M. AUGSTUMS and STEPHEN BERNARD
AP News

Feb 20, 2009 08:27 EST


Bank of America Corp. Chief Executive Ken Lewis has received a subpoena from the New York state attorney general's office in connection with Merrill Lynch's payment of employee bonuses before the companies combined on Jan. 1.

Former Merrill CEO John Thain, who was subpoenaed last month, also was questioned by investigators on Thursday about the bonuses that were paid in late December, just days before Bank of America completed its purchase of New York-based Merrill, according to a person familiar with the investigation. The person requested anonymity because of the ongoing nature of the matter.

Bank of America spokesman Robert Stickler on Friday declined to comment directly on the matter, adding "we do not comment on questions about subpoenas."

Bank of America shares dropped 64 cents, or 14 percent, to close at $3.93 Thursday. They fell 23 cents, or nearly 6 percent, to $3.70 in premarket trading Friday.

New York Attorney General Andrew Cuomo has been investigating $3.6 billion in bonuses Merrill Lynch & Co. executives received, and whether investors were properly informed about Merrill's finances.

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