Without admitting guilt, Bank of American paid a $33 million fine after the SEC sued it for lying to investors about the payment of $5.8 billion in bonuses to Merrill Lynch employees after BofA bought Merrill. School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial law, says it’s an odd deal.
“In light of the Treasury’s significant ownership position in Bank of America, the SEC’s fine has the appearance of the government punishing itself. In terms of the amount of the fine, in the context of the magnitude of the Merrill deal, the penalty seems like a parking ticket.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org