Anwar Bhamla

The SEC is reviewing whether BoA (BAC) broke the law by not telling shareholders about Merrill's planned bonus payments. If the SEC finds BoA at fault, the bank would be subject to civil penalties. BoA says it had no obligation to share the info.

Somebody explain this to me. The shareholders get cheated by a bad deal made by management. The SEC investigates. Then it slaps civil penalties. The company, i.e. the shareholders then pay the fine!!??