Breaking: BofA to pay $33m penalty in settlement…SEC charges BofA with making material false stmts on Merrill deal…CIT Group shares halted for news pending….

Update 5: BofA Spokesman: Ken Lewis ABSOLUTELY has the full support of the Board…

Happier Days...

Happier Days...

Update 4: BofA to pay $33 million penalty as part of settlement. Gee as a shareholder can I get part of that? Suuuure, after all WE are the wronged parties.. AS IF!

BofA is settling the charges, “without admitting or denying guilt”. Well now TAXPAYERS will wind up SOL when shareholders sue…after all we will not allow their capital ratios to fall….Pfft.

Developing via CNBC

Breaking II: Now SEC is charging BofA with making materially false, misleading statements in connection with the Merrill merger….oh boy….

We are shareholders. We have covered this extensively see our posts on Thain/Lewis here and here and here and  here

This is NOT about the failure to use the Material Adverse Change clause to escape the merger, this is the bonus issue Cuomo was on top of…

From Mary Thompson CNBC:

SEC: BofA agreed to pay up to $5.8B in Merill bonuses, contrary to statements in the merger agreement…

Oh Andrew Cuomo must have gotten them in the depositions of Thain and Lewis, oh boy….

Hope to Good Lord it is news of a buyout or capital infusion of some magnitude and not a bankruptcy….

Our previous post on CIT Group here

Okay CIT Group just raised the purchase price on the tender offer.. no biggie.

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August 3, 2009. Tags: , , , , , , , , . Economy, Finance, Politics, TARP.

One Comment

  1. Cuomo/BofA Smackdown: It’s On ! (again) « Moderate in the Middle replied:

    […] the judge dismissed the settlement between the SEC and BofA on the Merrill acquisition and its commensurate bonus/loss impact to […]

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