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[Update below]

Developing story: Apparently BAC screwed the pooch with misrepresenting the Merrill acquisition. Shocker. Will the SEC next pursue Hank Paulson and Ben Bernanke for enforcing this material misrepresentation? Mozillo's legal bill is already being footed by taxpayers, can we at least get a twoofer special here please?

From Bloomberg:

Aug. 3 (Bloomberg) -- Bank of America Corp. was sued by the U.S. Securities and Exchange Commission for allegedly making false claims about the purchase of Merrill Lynch & Co. in proxy statements. The SEC filed the suit in federal court in New York.

And this is the market's response:


Update: All is now taken care of - BAC settles with the SEC for $33 million, less than an hour after the suit becomes public. And... it's gone. The market ramp can now continue with commercial interruptions from the Federal Reserve of the United States.

Source: BofA Makes SEC Charges on False Statements Go Away in a Hurry