Cuomo demands better answers from Bank of America

By John O'Brien | Feb 27, 2009


NEW YORK (Legal Newsline) - Unhappy with the results of a deposition, New York Attorney General Andrew Cuomo has subpoenaed Bank of America as he attempts to find out if the company misled investors

The Associated Press reported Thursday that Cuomo issued the subpoena after deposing with Bank of America CEO Kenneth Lewis. The company recently finalized its purchase of troubled financial services provider Merill Lynch.

Merrill Lynch, before the acquisition, rushed bonuses of at least $1 million to 696 employees, with $121 million going to the top four, Cuomo says. Bank of America agreed in September to buy Merrill Lynch for $50 billion and finalized the deal last month.

Cuomo thinks Bank of America may have known about the bonuses and did not tell investors. He has also filed a state court action seeking to force former Merrill Lynch CEO John Thain to disclose the specifics of the company's executive bonuses.

The AP report says Bank of America spokesman Robert Stickler told Cuomo he would provide the names of those who received the bonuses if Cuomo would protect the information.

Cuomo did not agree to do that.

"We believe our employees are entitled to confidentiality in terms of their compensation," Stickler told the AP.

From Legal Newsline: Reach John O'Brien by e-mail at john@legalnewsline.com.

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