New York federal Judge Jed S. Rakoff on Monday rejected the proposed $33 million settlement between the Securities and Exchange Commission and Bank of America stemming from the bank's takeover of Merrill Lynch & Co. In his opinion, Rakoff took the SEC to task for admitting the $33 million would be indirectly borne by the shareholders, while nonetheless arguing that the payment would increase shareholder scrutiny and management accountability.
Judge Rejects SEC, BofA Settlement Over Merrill Takeover
New York Law Journal
September 15, 2009