Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, February 17, 2010

Judge Rakoff Seeks More Information on BofA GC's Firing

Why was former Bank of America GC Timothy Mayopoulos fired five days after the BofA shareholders approved the merger with Merrill Lynch?  In its complaint the New York AG suggests that the firing resulted from Mayopoulos' advice that Merrll's growing losses should be disclosed.  Judge Rakoff asked the SEC about this in the recent hearing on the agency's proposed settlement with BofA.  In a filing today, the SEC stated that Mayopoulos was fired to make room for Brian Moynihan, who later became CEO of BofA, and not because of his job performance or legal advice.  Judge Rakoff has asked the New York AG to provide him with its deposition testimony, so that he can better evaluate the premises for the SEC's proposed settlement.

Stay turned for the next installment in the drama.  The trial on the SEC's complaint relating to the Merrill bonuses is still scheduled to begin on March 1.

WSJ, SEC: Ex-BofA General Counsel Not Fired Over Advice

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