Tuesday, August 11, 2009
David Mildenberg and Thom Weidlich, Bloomberg
David Mildenberg and Thom Weidlich, Bloomberg
Bank of America Corp. CEO Kenneth Lewis faces more questions
Aug. 11 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth Lewis faces more queries about his purchase of Merrill Lynch & Co. after a federal judge refused to approve a $33 million settlement of a lawsuit over bonuses.
The bank agreed on Aug. 3 to settle U.S. claims the bank misled investors while buying Merrill. Yesterday, U.S. District Judge Jed Rakoff in New York said the amount isn’t appropriate if the bank lied about billions of dollars in payments. Rakoff asked for more filings by Aug. 24 and said he won’t rule on the accord before Sept. 9.
The delay exposes Lewis to further criticism over his handling of the Merrill purchase, a decision that cost him his role as chairman of the Charlotte, North Carolina-based bank.
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Posted by Editor on 08/11/09 at 07:48 AM •
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