New York drops effort to win damages from BofA over Merrill


New York Attorney General Eric Schneiderman won't seek damages from Bank of America (BAC) over its $18.5B acquisition of Merrill Lynch during the financial crisis in 2009.

However, Schneiderman will still pursue the lawsuit and seek an injunction that would ban former BofA CEO Kenneth Lewis and ex-CFO Joe Price from the securities industry and from being directors of public companies.

Schneiderman has accused BofA of misleading shareholders over the scale of losses at Merrill and bonus payouts in order to win authorization for the deal, and of manipulating the federal government to provide bailout loans.

In 2012, BofA agreed to pay stockholders $2.43B to settle a lawsuit over losses they made because of the Merrill Lynch transaction.

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Comments (12)
  • billmichael
    , contributor
    Comments (135) | Send Message
     
    Wowww...!!!
    I bet BAC will hit $20.00 real soon.
    19 Jan 2014, 01:28 AM Reply Like
  • Adaminatree
    , contributor
    Comments (17) | Send Message
     
    $20 soon, $30 by summer.
    19 Jan 2014, 02:02 AM Reply Like
  • AlphaPro2
    , contributor
    Comments (53) | Send Message
     
    $30 by summer? $22 - $23 by summer and already that would be huge!
    19 Jan 2014, 10:29 AM Reply Like
  • MatchlessGlory
    , contributor
    Comments (37) | Send Message
     
    Good litigation news? I thought Christmas had already passed..
    19 Jan 2014, 05:22 AM Reply Like
  • Wow72
    , contributor
    Comments (584) | Send Message
     
    Wow they finally realize endless lawsuits help no one and get us no where as a country. Im shocked they actually self corrected themselves, a day to celebrate for sure.
    19 Jan 2014, 07:05 AM Reply Like
  • Ruffdog
    , contributor
    Comments (3234) | Send Message
     
    This is an election year and if the democrats fall behind in the polls, look for the Obama administration to keep filing frivolous lawsuits. The only thing that may change is that the banks may be less willing to settle out of court in the future.
    19 Jan 2014, 09:33 AM Reply Like
  • Just_woodman
    , contributor
    Comments (35) | Send Message
     
    Remember this is not the end of the legal story! we still have that 5.8 billion hanging over our heads, though I expect it will be disposed of soon and we can get on track to re building back to the largest bank in the US. As I remember, this stock traded around $52.00+- a share back then.
    19 Jan 2014, 07:20 AM Reply Like
  • budapestjs
    , contributor
    Comments (61) | Send Message
     
    True, bac is still cheap on many metrics…however the 'used to be $50/share' idea is off because they have two times as many shares issued now…really 25 is the new 50 (adjust the share count chart below to the 10 year chart to get a clear picture).

     

    http://bit.ly/19EQomj

     

    Still though, the company is becoming much more efficient and could easily go above their prior market cap highs.
    19 Jan 2014, 09:49 AM Reply Like
  • watermark302
    , contributor
    Comments (386) | Send Message
     
    Ken Lewis banned from the candy store - ouch!!
    19 Jan 2014, 08:07 AM Reply Like
  • Microloan
    , contributor
    Comments (14) | Send Message
     
    Lewis is hiding behind his beard in Arizona
    19 Jan 2014, 08:58 AM Reply Like
  • femesteg
    , contributor
    Comments (3) | Send Message
     
    No country can prosper without a healthy banking system. Armies of lawyers are doing everything in their power to cripple the banking system for personal gain. Politicians have forced banks to make risky business practices, then blamed the banks for doing so when this didn't workout. Glad to see at least one law suit dismissed.
    19 Jan 2014, 10:33 AM Reply Like
  • Morrie
    , contributor
    Comments (57) | Send Message
     
    This is good news on both the suit and injunction points. Maybe BofA can eventually be freed of this hazy cloud hanging over it.
    19 Jan 2014, 01:54 PM Reply Like
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