Bank of America's Lewis subpoenaed over Merrill deal: WSJ
(MarketWatch) -- Bank of America Corp. (BAC:bank of america corporation com
News , chart , profile , more
Last: 3.38-0.55-13.99%
10:20am 02/20/2009
BAC 3.38, -0.55, -14.0%) Chairman and CEO Kenneth Lewis has been subpoenaed by New York State Attorney General Andrew Cuomo, who is investigating whether the bank withheld information from investors, according to a report in The Wall Street Journal citing people familiar with the matter. Cuomo is investigating the bank's purchase of Merrill Lynch & Co. to determine whether investors were misled about the depth of Merrill's losses in late 2008 and whether details of the bonuses to Merrill employees should have been disclosed, the report said. Investigators also took testimony from John Thain, the former CEO of Merrill, on Thursday, the Journal reported. Thain was quizzed on why the September agreement contained a nonpublic attachment that detailed the maximum Merrill could pay in bonuses, the report added
