Monday, August 24, 2009

SEC and BofA Try to Convince Judge to Approve Settlement

Bank of America Corp (BAC.N) and the top U.S. securities regulator sought to persuade a judge to approve their $33 million settlement of a civil lawsuit over the lack of disclosure of billions of dollars of bonuses at Merrill Lynch & Co.
The SEC says that BofA misled shareholders by not telling them that it was going to pay Merrill employeees $3.6 billion dollars in bonuses, Bank of America claims that it was clear from the public disclosures that the bonuses would be paid. Both side contend that the settlement, where Bank of America is going to pay $33 million to settle the charges, is a fair settlement.

Judge Rakoff has not yet approved the settlement.

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