SEC Defends $33M Settlement With Bank Of America

The federal government says its proposed settlement with Bank of America for misleading shareholders about bonuses for executives paid by Merrill Lynch is fair, reasonable and adequate. The Securities and Exchange Commission affirmed in a legal filing its defense of the proposed $33 million settlement over the bonus affair, which arose after Bank of America Corp. agreed to buy Merrill for $50 billion a year ago.

AP
Published: September 9, 2009

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WASHINGTON (AP) - The federal government says its proposed settlement with Bank of America for misleading shareholders about bonuses for executives paid by Merrill Lynch is fair, reasonable and adequate.

The Securities and Exchange Commission affirmed in a legal filing its defense of the proposed $33 million settlement over the bonus affair, which arose after Bank of America Corp. agreed to buy Merrill for $50 billion a year ago.

The SEC also says there is no factual support to charge individual Bank of America executives in the case.

A federal judge has delayed approving Bank of America’s proposed settlement with the SEC. He asked for filings by Wednesday from the SEC and the bank so that he can decide whether to approve the deal.