Wednesday, September 9, 2009
The WSJ reports that Bank of America has responded by letter to the New York AG's charges that its proxy statement in connection with the Merrill Lynch merger was misleading and that it was hiding behind the attorney-client privilege. On the contrary, according to BofB, the allegations are "spurious" and "the basic premise of the letter is simply wrong. (The AG's letter is here.) BofA also said that it has not asserted reliance on legal advice as a justification for its disclosures, because the attorneys wrote the disclosures without the participation of management. Cuomo's office says it stands by its position.
In a filing with the federal district court judge that is reviewing the proposed BofA settlement with the SEC, the bank said it was prepared to litigate if the judge did not approve the settlement. WSJ, BofA Says It's Not Hiding Behind Lawyers.