Bank of America accused of misleading investors

February 05, 2010

NEW YORK - The New York Attorney General's office said Thursday it filed civil charges against Bank of America and its former CEO Ken Lewis, saying the bank misled investors about Merrill Lynch before it acquired the Wall Street bank in early 2009. Civil charges also were being filed against Joe Price, who was chief financial officer at the time of the deal and is now head of BofA's consumer banking division. At the same time, the Securities and Exchange Commission reached a settlement to resolve federal charges it brought against the bank over similar issues. It is the second time the SEC and Bank of America have tried to settle that case. Bank of America has been accused of failing to properly disclose losses at Merrill and bonuses paid to investment bank employees before the deal closed.

- Associated Press

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