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Ex-BofA CFO settles charges over Merrill purchase

  • Former Bank of America (BAC -1.7%) CFO Joe Price will pay a fine of $7.5M and be prohibited from serving as an officer or director of a public company for 18 months to settle charges lobbed by the New York AG that he - along with other BofA execs - failed to disclose more than $9B of projected losses at Merrill Lynch prior to a shareholder vote on the acquisition. Former bank CEO Ken Lewis last month agreed to pay $10M to settle.
  • NY AG Schneidermann's office says it has evidence the bank withheld information from the federal government as well even as it sought financial aid.
  • Can shareholder lawsuits and more settlements be far behind?
  • Previously: BofA slips amid leak of massive global mortgage settlement
Comments (18)
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    Love how some people claim this is government 'extortion' when securities regulators finally do their job!
    25 Apr, 01:16 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (696) | Send Message
     
    Except that it was Congress and the Fed that created the housing bubble in the first place. Under the CRA, eventually all banks were forced loosen their standards. People like then HUD secretary Cuomo insisted that bad loans be processed. Later when Citi resisted the mandate to issue sub-prime loans in Chicago, they were pressured by groups like Acorn and others like Barney Frank, and yes Obama. And Fannie/Freddie led the way for bundling of mortgage paper. Today, who is being punished for that?
    25 Apr, 03:06 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2559) | Send Message
     
    yeah so who gets the 7.5 M. Ill be waiting for a deposit to hit my brokerage account... oh wait i forgot i wont be getting a dime.
    25 Apr, 01:20 PM Reply Like
  • papayamon
    , contributor
    Comments (1168) | Send Message
     
    in the meantime, the guys who broke the law are living high on the hog in gated communities.
    25 Apr, 01:24 PM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    well someone was asleep at the wheel politicians dont want their donors in jail maybe?
    25 Apr, 01:26 PM Reply Like
  • joyer1
    , contributor
    Comments (15) | Send Message
     
    Well, that is just the issue. The Gov has not proven that anyone broke any laws. It was a government deal in the first place. They forced it and then have the gall to come back and sue the CEO's that went along with it.
    25 Apr, 03:49 PM Reply Like
  • tomcorey
    , contributor
    Comments (8) | Send Message
     
    $17.5 Million in fines between them and not a day of jail time. They commit felonies for which the common man would spend 10 years in prison and they walk away with their pensions, perks and palaces intact. Got to love America!!
    25 Apr, 01:36 PM Reply Like
  • risktaker111
    , contributor
    Comments (4) | Send Message
     
    In Singapore, when the Government goes after someone for defrauding the people, it makes sure the person gets jail time, plus he is left practically penniless. The US government has no problem asking banks to pay billions, but has difficulty in asking the guys who caused the problem, token money and no jail time! Shameful behaviour.
    25 Apr, 09:35 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1148) | Send Message
     
    Yep in the least they should be forced to buy that much in (BAC) stock and have those shares split up between each shareholder of record over the last 5 years. that would mean I might get 1/100th of a share. BUT it might raise the share price by a great deal like 1/100th of a penny :/ I agree how about some JAIL TIME and then keep them from working in industry FOREVER!
    25 Apr, 02:48 PM Reply Like
  • John/Jack
    , contributor
    Comments (95) | Send Message
     
    What outrageous hog s&it. B of A tried to back out of this miserable merger, the government says no, you HAVE to save the markets by buying Merrill Lynch, then turn around and SUE the bank for doing exactly what the government forced them to do. And no one will even report this in the media.
    25 Apr, 04:18 PM Reply Like
  • smcke0wn
    , contributor
    Comments (2) | Send Message
     
    And not a single day in jail for anyone?
    25 Apr, 04:39 PM Reply Like
  • bill coker
    , contributor
    Comments (11) | Send Message
     
    So why aren't Mozillo and Kurland in jail? That is where they belong. Along with most of the Country Wide players. Lewis as well.
    25 Apr, 04:39 PM Reply Like
  • nap.jerry
    , contributor
    Comments (54) | Send Message
     
    We all know these two should actually be in jail for their role in the collapse of BOA. Their fines probably don't amount to one years bonus for either of them. The justice system hard at work.
    25 Apr, 04:39 PM Reply Like
  • bill coker
    , contributor
    Comments (11) | Send Message
     
    Angelo Mozilo is laughing at all of us while he plays golf at Sherwood Country Club and The Quarry smoking his $25 cigars. Poor thing. Only netted about $400 million from compensation after SEC settlement. Says he has "no regrets" and "sleeps like a baby"
    25 Apr, 04:39 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    this is one guy that should never see the light of day!
    26 Apr, 07:17 AM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    both should have gone to jail.
    the fines are a disgrace and the AG is as well.
    it is "chump change" when you consider the damage to shareholder equity and they are still paying.
    you want to stop this corruption in America? send them to jail for 5-10 years!
    CNBC and the rest are a disgrace!
    26 Apr, 07:16 AM Reply Like
  • birder
    , contributor
    Comments (1164) | Send Message
     
    Oh heck. They probably made 10x that in bonuses so no big deal. And it is about 1/100 of 1% of what investors lost as a result. Don't you just love our legal system?
    26 Apr, 12:04 PM Reply Like
  • jcalab
    , contributor
    Comment (1) | Send Message
     
    I guess the public outrage is not enough for these 3rd world country congressmen and senators to put in an effort to get these people in jail and take away their stolen money. Nothing will happen until our public officials are threatened with losing their paycheck and booted out of office.
    26 Apr, 03:04 PM Reply Like
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