The Securities and Exchange Commission Monday said Bank of American Corp. has agreed to pay $33 million to settle charges the Charlotte bank misled investors about bonuses paid to Merrill Lynch & Co. executives. The SEC alleged that in proxy materials sent to shareholders about the proposed Merrill acquisition, Bank of America said the New York investment bank had agreed to not pay year-end bonuses without Bank of America's consent. The bank, however, had already authorized Merrill to pay up to $5.8 billion in bonuses for 2008 under the merger agreement. Bank of America did not admit wrongdoing , Baltimore Sun reports.
Meanwhile, the bank yesterday shuffled senior management and paid $33 million to settle U.S. claims it misled investors while buying Merrill Lynch & Co. Liam McGee, who headed consumer banking, left and was replaced by Brian Moynihan in a division that has provided most of the Charlotte, North Carolina-based bank’s revenue and profit , Bloomberg reports.
However, Bank of America will pay a $33 million penalty to settle government charges that it misled investors by telling them that Merrill Lynch would not pay year-end bonuses without Bank of America’s consent. But Bank of America had authorized Merrill to pay up to $5.8 billion in bonuses , Kansas City Star reports.