Let me see if I can understand this: shareholders of BOA have to pay a fine of $33 million after they were mislead in the Merrill deal. Gotta love the system. http://www.thestar.com/business/article/675652 Associated Press WASHINGTON–Bank of America has agreed to pay a $33 million (U.S.) penalty to settle government charges that it misled investors about Merrill Lynch’s plans to pay bonuses to its employees. In seeking approval to buy Merrill, Bank of America told its shareholders that Merrill Lynch agreed not to pay year-end bonuses without Bank of America’s consent. But the Securities and Exchange Commission says Bank of America had authorized Merrill to pay $5.8 billion in bonuses. The bonuses amount to nearly 12 per cent of the $50 billion that Charlotte, N.C.-based Bank of America paid for Merrill. The SEC says Bank of America agreed to pay $33 million to settle the charges without admitting or denying the allegations. California Representative Darrell Issa, a Republican member of the House Oversight Committee, said the SEC’s claims against Bank of America over disclosing bonus pay are “validation” for lawmakers concerned about the acquisition of Merrill Lynch. “While the settlement reached with the SEC does not include an admission of liability, the circumstances underscore the need for us to continue our investigation,” Issa said.
Yes, after all, whose money is it anyway? Shareholder!!! In the name of protecting the shareholders…