New York federal Judge Jed S. Rakoff grilled attorneys for the SEC on Monday about a proposed $150 million settlement that would bring an end to two actions against the Bank of America Corp. stemming from its $50 billion takeover of Merrill Lynch in 2008. The actions accuse the bank of failing to disclose to shareholders that it had authorized Merrill to pay up to $5.8 billion in bonuses in 2008 and of keeping shareholders in the dark about "extraordinary" losses Merrill sustained two months before the merger.
Rakoff Still Has Questions About SEC Pact With BofA
New York Law Journal
February 9, 2010