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BoA Head Subpoenaed in New York Over Merrill Takeover - Report
Stephen Harris
20 February 2009
The chief executive officer of Bank of America, Kenneth Lewis, has been subpoenaed by New York attorney general Andrew Cuomo, who is investigating whether the bank misled investors in connection with its acquisition of Merrill Lynch, according to an unnamed source quoted by Bloomberg.
When WealthBriefing contacted Bank of America to establish the veracity of the report, a spokesperson declined to comment on the matter. Earlier this year Mr Cuomo subpoenaed former Merrill chief executive John Thain and Bank of America chief administrative officer Steele Alphin in order to obtain information about billions of dollars of bonuses paid to Merrill executives before the 1 January takeover completion. Mr Cuomo is also believed to be reviewing how and when Bank of America disclosed information about Merrill’s financial health, after the disclosure of the bonuses and an unexpectedly large $15.3 billion fourth quarter loss at Merrill that forced Bank of America to seek further aid from the government.