BOA cuts deal with SEC, settles huge lawsuit for pennies.

[dixiegrrrrl]

( The SEC has to file "Litigation Releases" when it settles out of court in lawsuits.
This is the SEC's way of claiming they are "enforcing" the law.)

Litigation Release No. 21407 / February 4, 2010
Securities and Exchange Commission v. Bank of America Corporation, Civil Action Nos. 09-6829, 10-0215 (S.D.N.Y)


So here is the wrist slap:

Charge: that BOA failed to properly disclose employee bonuses and financial losses at Merrill Lynch before shareholders approved the merger of the companies in December 2008.

The settlement: 150 million dollar fine.

as opposed to more than $4 billion in bonuses.

( as reported by (MarketWatch) --
Bank of America will pay employees of its investment bank and Global Markets unit
more than $4 billion in bonuses for 2009.


The proposed settlement also requires Bank of America to implement and maintain seven remedial undertakings for a period of ( ONLY )three years:

* Retain an independent auditor to perform an audit of the Bank’s internal disclosure controls, similar to an audit of financial reporting controls currently required by the federal securities laws.
* Have its Chief Executive and Chief Financial Officers certify that they have reviewed all annual and merger proxy statements.
* Retain disclosure counsel who will report to, and advise, the Board’s Audit Committee on the Bank’s disclosures, including current and periodic filings and proxy statements.
* Adopt a “super-independence” standard for all members of the Board’s Compensation Committee that prohibits them from accepting other compensation from the Bank.
* Maintain a consultant to the Compensation Committee that would also meet super-independence criteria.
* Provide shareholders with an annual non-binding “say on pay” with respect to
executive compensation.
* Implement and maintain incentive compensation principles and procedures and
prominently publish them on Bank of America’s Web site.


http://www.sec.gov/litigation/litreleases/2010/lr21407.htm

[Democrats_win]

1. The SEC is doing a heck of a job. How wrong is this settlement?

This crooked bank should be treated just the way they treat people they foreclose on or people who have bank of america usury cards. They will take you to court and send goverment thugs to your home until they get every last penny that they've defrauded out of you. bank of america is so rotten to people yet they are shown mercy?!!! This country is a joke.

[westerebus]

2. Well now.

This administration is really really going that extra mile to bring the full weight of the American Citizen's ire to bear down as hard as possible on corruption.

Did BOA tell them to just deduct it from their TARP account? That would be fitting.

[dixiegrrrrl]

3. The TARP account is OUR money.

We gave it to them.
And all those lawyers being paid by BOA is OUR money too.

[westerebus]

4. That's precisely the point. n/t

[dixiegrrrrl]

5. Ahhh....wasn't sure how straight faced you were being.

:hi:

[westerebus]

6. It's that wicked grin, I just can't hide.

:hi: