Tagged: Bank of America

BofA, Citi hid debt like Lehman

Bank of America and Citigroup brushed off reports that they incorrectly hid from investors billions in debt — similar to what Lehman Brothers did — to obscure its true level of risk.  Company documents filed with regulators show the two Wall Street banks classified some short-term repurchase agreements (“repos”) as sales, which they should have […]

BofA settlement with SEC okayed

A federal judge okayed a $150 million Bank of America settlement with the SEC to end civil charges accusing the nation’s largest bank with misleading shareholders when it acquired Merrill Lynch.  But law Professor Elizabeth Nowicki, both a former SEC and Wall Street attorney, says it is likely a short-lived “win” for BofA because the judge […]

BofA balks at SEC settlement

Bank of America is balking at suggestions from a federal judge that an outside compensation consultant be appointed as part of BofA’s settlement with the SEC.  The judge has twice rejected as too small settlement proposals in the case involving BofA not disclosing both losses and bonuses when it merged with Merrill Lynch.  Law Professor […]

BofA/S.E.C. settlement still unsettled

Federal Judge Jed Rakoff suggests he may reject a $150 million proposed deal reached between Bank of America and the Securities and Exchange Commission to settle charges the bank misled shareholders when it took over Merrill Lynch.  Law Professor Elizabeth Nowicki, once an S.E.C. attorney, says she’s sympathetic to the S.E.C, but applauds the judge’s […]

BofA sued for securities fraud

Bank of America (and its then CEO and CFO) is being sued by New York’s attorney general for securities fraud for misleading shareholders and the government about BofA’s merger with Merrill Lynch.  Law Professor Tamar Frankel, an authorities on securities law and legal ethics and author of “Trust and Honesty: America’s Business Culture at a […]

Wellesley lawyer new BofA CEO

Bank of American has tapped Wellesley attorney Brian Moynihan as its new CEO, promoting him up from head of the bank’s consumer and small-business operations.  Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance in the BU School of Management, says BofA needs a risk-management veteran, not a lawyer, at its helm. “In […]

SEC widens BofA/Merrill probe

The Securities and Exchange Commission is widening its probe of the Bank of American take-over Merrill Lynch to go beyond failing to disclose bonuses paid to Merrill employees to now include failure to disclose ML’s mounting losses.  Law Professor Elizabeth Nowicki, a former SEC and Wall Street attorney, says it’s about time. The SEC’s expanding probe of Bank […]

BofA to repay TARP loans

Bank of America has received Fed approval to repay the $45 billion in Troubled Asset Relief Program bailout loans it got from taxpayers over the past year.  Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance in the School of Management, says the payback might be too early. “Banks are beginning to earn their […]

BofA CEO Lewis resigning

After months of legal scrutiny of Bank of America’s takeover of Merrill Lynch, BofA CEO Ken Lewis says he’ll step down at year’s end.  School of Management Professor James Post, an authority on corporate governance and business ethics, says the momentous changes that Lewis orchestrated left BofA vulnerable and Lewis himself personally accountable. “What brought […]

SEC sues Bank of America

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 […]