Ilya Marritz covers business for WNYC.
Bank of America Settles With New York AG
Former CEO To Pay $10 Million Penalty
Wednesday, March 26, 2014
More than five years after Bank of America acquired Merrill Lynch, the last major lawsuit over that deal has been settled. The agreement includes a hefty penalty for Bank of America's former CEO, Kenneth Lewis.
Lewis will pay $10 million, and accept a three year ban on working as an officer or director at any publicly traded company. Bank of America will pay $15 million to cover the state's litigation costs.
Lewis was the boss at Bank of America in that financially turbulent September of 2008.
The same weekend that Lehman brothers teetered on the edge of bankruptcy, Lewis engineered Bank of America’s takeover of Merrill Lynch.
At the time, Merrill was known to be ailing. But the authorities later said Lewis and Bank of America didn't adequately inform shareholders about just how shaky Merrill's finances had become.