Bank of America Gets Spanked
There are terms and conditions associated with this transaction, of course.
In a lawsuit filed on Thursday, the attorney general, Andrew M. Cuomo, claimed the bank and the two officers — Kenneth D. Lewis, the chief executive, and Joe L. Price, the chief financial officer — misled shareholders and the government about the merger with Merrill Lynch.
Both executives have stepped from the posts, though Mr. Price remains at the bank.
The attorney general had been in settlement talks with the bank since November, but the talks apparently fell through.
As Mr. Cuomo was announcing his lawsuit, the S.E.C. released details of a settlement with Bank of America on two separate cases. The bank agreed to pay a $150 million fine and strengthen its corporate governance rules.
Oooh, bet the SEC is pissed! Here they are trying to quietly make this little BofA problem go away and Cuomo refuses to let go.
DealBook has the 90 page complaint from Cuomo's office.
Certainly Ken Lewis knows the game by now, I'm shocked he didn't head into Cuomo's office with some Power Bars and a few gallons of Gatorade. Come on, homie, this is your ass we're talking about, you're going to have to bring the A game next time. Or else learn how to take a good assraping for when you're sharing a cell with Bernie Madoff. Just sayin.