Report: Bank of America Won’t Pay NY Damages on Merrill Buy
Bank of America (NYSE:BAC) is beginning to see light at the end of the tunnel that has been the 2009 purchase of Merrill Lynch. According to a Reuters report, New York Attorney General Eric Schneiderman has conceded on making the bank pay damages on the investigated purchase, though Schneiderman is pursuing judgments against BofA executives and possibly the bank itself.
A member of Scheiderman’s team told a conference on January 17 that the attorney general’s office was finished seeking damages from Bank of America and instead was “trying to move [the case] to a conclusion,” Reuters reports. That conclusion may include judgments against former CEO Kenneth Lewis and then-CFO Joe Price that would prohibit the two from working in securities in the future, as well as ensuring they won’t serve on any boards of publicly traded companies.
Bank of America not paying New York damages on its questionable purchase of Merrill Lynch has not sat well with Governor Andrew Cuomo, several sources indicate. New York’s case against Bank of America with respect to the Merrill deal originated with Cuomo, back when the governor was the state attorney general. Schneiderman’s inability to get BofA to pay damages has disconcerted Cuomo along with another high-profile case.