Securities Law Prof Blog

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

Thursday, April 23, 2009

New York AG Releases Letter on BofA-Merrill Merger Investigation

New York Attorney General Andrew Cuomo has been conducting an investigation into Bank of America's merger with Merrill Lynch.  While the impetus of the investigation may have been Merrill's payment of bonuses prior to the acquisition, it has moved well beyond that.  The Attorney General has posted on its website a letter to Congress, the SEC and other regulators about its findings.  Among them, BofA CEO Kenneth Lewis testified that BofA considered exercising the MAC clause to call off the merger because of Merrill's deteriorating financial condition, but Treasury Secretary Paulson threatened to remove Lewis and the board of directors if they did so, because of the shock it would cause the financial system.  In addition, Paulson said that he did not keep the SEC in the loop during these crucial discussions.  Read all about it.  ATTORNEY GENERAL CUOMO LETTER REGARDING BANK OF AMERICA - MERRILL LYNCH MERGER

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