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October 1, 2012

Bank of America Reaches $2.43B Settlement in Merrill Case 
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The financial giant Bank of America has announced a $2.43 billion
settlement in connection with its misleading of investors while
acquiring Merrill Lynch. Bank of America executives allegedly concealed
heavy losses at Merrill when it purchased the company for $50 billion in
2008. While shareholders relied on optimistic projections from the bank
that the deal would earn money, the losses actually resulted in a $20
billion taxpayer bailout. The settlement is the largest in a securities
class action case to result from the U.S. financial crisis. It stands
likely to undermine a case brought by the New York attorney general's
office against Bank of America as prosecutors can't recover losses for
shareholders once they settle.

 

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