School of Law Professor Tamar Frankel, an authority on securities law and legal ethics, says the SEC is in a tough spot reviewing whether bailed-out Bank of America broke the law by not disclosing to shareholders bonuses to executives at Merrill Lynch, which BofA had bought. She suggests three ways to enforce the law, which could bring fines, with a bank receiving bailout money.
“One is to impose a clear duty in such a case prospectively, for future actions. Another is to impose the responsibility not on the bank but on the decision makers, the boards and executives. The third is to remove by law any CEO that knew of the prepared bonuses and did not bring the question to the authorities for a decision.”
Contact Tamar Frankel, 617-353-3773, firstname.lastname@example.org