Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MERRILL L IN 09/11

(SXC)
SummaryNews 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

MERRILL LYNCH & CO : Lawmaker asks if BofA broke law on Merrill bonuses

04/06/2009 | 12:18pm EDT
Congressman Dennis Kucinich at U.S. House hearing on effects of the AIG bailout on Capitol Hill

NEW YORK (Reuters) - Congressman Dennis Kucinich on Monday asked the U.S. Securities and Exchange Commission to determine if Bank of America Corp violated federal securities laws by not disclosing Merrill Lynch & Co's plan to pay $3.62 billion of bonuses to top executives.

In a letter to SEC Chairwoman Mary Schapiro, Kucinich said there were "significant questions" surrounding Bank of America's failure to disclose bonus details before shareholders voted on the bank's acquisition of Merrill last December 5.

He asked the SEC to decide whether the bank's actions constituted a "material" omission, and whether it might order the bank, prior to its April 29 annual meeting, to provide to shareholders the agreement containing bonus details.

"There is no question that any reasonable Bank of America shareholder would have considered the Merrill bonuses to be material to their decision on whether to approve the merger," Kucinich, a Democrat who chairs the House Domestic Policy Subcommittee, wrote. "It is the SEC's responsibility to investigate and prosecute such abuses."

A Bank of America spokesman, contacted by Reuters, referred to the bank's March 29 response to an inquiry from Kucinich. It said it disclosed everything that was required prior to the shareholder vote, and it was not required to disclose details it then knew about the size and timing of Merrill's bonuses.

SEC spokesman John Heine did not immediately respond to a request for comment. Bank of America's annual meeting will be held in Charlotte, North Carolina, where the bank is based.

(Reporting by Jonathan Stempel; editing by John Wallace)


© Reuters 2009
Stocks mentioned in the article
ChangeLast1st jan.
BANK OF AMERICA CORPORATION 1.58% 47.57 Delayed Quote.56.94%
All news about MERRILL L IN 09/11
2009MERRILL LYNCH & CO : Thain says BofA Merrill statements not true: report
RE
2009MERRILL LYNCH & CO : U.S. pressured BofA to complete Merrill deal: Cuomo
RE
2009MERRILL LYNCH & CO : U.S. pressured B of A to complete Merrill deal: Cuomo
RE
2009MERRILL LYNCH & CO : Merrill healthcare bankers move to boutique bank
RE
2009MERRILL LYNCH & CO : Merrill healthcare bankers move to boutique bank: report
RE
2009MERRILL LYNCH & CO : Merrill Lynch closes Japan private equity office
RE
2009MERRILL LYNCH & CO : Merrill Lynch settles employee lawsuit for $75 million
RE
2009MERRILL LYNCH & CO : Lawmaker asks if BofA broke law on Merrill bonuses
RE
2009MERRILL LYNCH & CO : Merrill bonus names are not secret: NY judge
RE
2009MERRILL LYNCH & CO : House committee scrutinizes Merrill bonuses
RE
More news