SEC expands charges against Bank of America, saying it failed to disclose losses at Merrill
By APMonday, January 11, 2010
SEC expands charges against BofA
WASHINGTON — Federal regulators have expanded their charges against Bank of America Corp. over billions in bonuses paid at Merrill Lynch.
The Securities and Exchange Commission is accusing Bank of America of failing to disclose mounting losses at Merrill before a shareholder vote approving the combination of the two firms. The SEC said Monday it has asked a federal judge in Manhattan to allow it to file the new charges.
The SEC and Bank of America are scheduled to go to trial on March 1. The SEC previously accused Bank of America of failing to disclose to shareholders payment of the bonuses to Merrill employees after Merrill was acquired a year ago by the bank. Last fall, the judge threw out a proposed $33 million settlement of those charges.
