Tomahawk, WI 01/21/2014 (BasicsMedia) – Regarding the acquisition of Merrill Lynch by Bank of America Corp (NYSE:BAC) in 2009 in a lawsuit filed by the New York Attorney General’s Office, the Bank will not handle any claims. A spokesman of the Office, Matt Mittenthal said on Jan 17 that the New York Attorney General Eric Schneiderman is continuing the case without damages claim. The lawsuit also requests a restriction for people from security industries and from serving people from public boards. In this context, the Bank’s spokesman, Lawrence Grayson rejected to comment.

Accusations on the bank

Bank of America has been charged by the state for misinforming shareholders about losses at Merrill Lynch so that they could get the $18.5 billion deal approved. Further, the bank is also accused of later influencing the Federal Government into handing out bailout funds from the Treasury Department’s Troubled Asset Relief Program to achieve the deal.

The bank has undergone regulatory investigations, investor lawsuits and much condemnation from lawmakers as it did not warn shareholders about claims of losses at Merrill Lynch before they sought to buy the brokerage in January 2009. Bank of America along with its former Chief Executive Officer, Kenneth Lewis and its former Chief Financial Officer Joseph Price was sued by the attorney general’s office, under Andrew Cuomo, now the governor of New York. Later, in November 2010, Cuomo was replaced by Schneiderman as attorney general.

Settlement

In 2008, Bank of America acquired its first bailout by taxpayers of $15 billion as Merrill took $10 billion. In January 2009, the bank took a second round bailout of $20 billion. This was after Merrill losses in the final quarter exceeded $15 billion. This put a question on the stability of the company as an independent firm, in case acquisition took place. Two years later, the bank was seen to come to settlement with the shareholder class-action lawsuit with $2.43 billion for losses incurred by investors because of the Merrill take over.

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