This adds information on new developments in issues previously addressed in posts here on August 13, 2009 and again on August 25, 2009.
Bank of America reportedly told the Federal Judge considering whether to approve BOA's settlement of allegations including fraud leveled by the Securities and Exchange Commission, that BOA is ready to go to trial.
Also, that Bank of America did not actually rely on the advice of its attorneys either to tell its shareholders that it would tell the shareholders if Merrill Lynch paid bonuses, or not to tell its shareholders when as a matter of fact Merrill Lynch already had paid bonuses. However, BOA contends that its lawyers are responsible for these things, and not its officers, although these are not bad things anyway, BOA says.
At the time, as you may recall, BOA was in the process of buying Merrill Lynch. See, e.g., Zachary A. Goldfarb, "Financial Crisis/Bank of America Defiant Over Merrill Lynch Bonuses" (Los Angeles Times Online, Thursday, September 10, 2009, courtesy the Washington Post); Zachery Kouwe, "S.E.C. Defends Deal in Merrill Takeover" p. B2, col. 4 (New York Times, Business Section, Thursday, September 10, 2009); Dan Fitzpatrick & Kara Scannell, "'Simply Wrong': BofA Fires Back at Cuomo" p. C3, col. 2 (Wall Street Journal, Thursday, September 10, 2009)(payment to Wall Street Journal required to read or view).
Transparently on the offensive against allegations of withholding information, BOA also challenged assertions of the New York Attorney General's Office that BOA is relying a lot on advice it allegedly received from its attorneys, not simply to defend itself against the SEC but as a reason to withhold information by asserting attorney-client privilege.
The same linked sources also report that the SEC told the Federal Judge that it did not have evidence of wrongdoing by officials of Bank of America regarding the withheld information. Note that much information was also withheld from the SEC by BOA's assertion of attorney-client privilege.
As we began by noting, note again that BOA has defiantly told the Federal Judge that BOA is prepared to proceed to trial if its settlement with the SEC is not approved.
Proceed to trial. Enough words. Proof is what is required. Enough blaming the lawyers and other people. Let the information all come out, the good and the bad alike.
Try it.
Please Read The Disclaimer.
Comments