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BofA asked to produce info on bonuses – again

9 March, 2009
by

from The New York Times

Edited by Andrew Ross Sorkin
9 March, 2009

Frank Demand BofA Bonus Data

Barney Frank, House Financial Services Committe, and Andrew Cuomo, Attorney General of N.Y. have sent a letter to Kenneth Lewis demanding information about bonuses paid to employees of Merrill Lynch and Bank of America at the time ML had been offered a a substantial bailout while BofA was proceeding with an acquisition of  ML.

The letter, which is available in pdf format HERE, states that Merrill Lynch knew that it was facing huge losses and when the bonus payments were made ($3.6 billion to employees of Merrill Lynch and $3.3 to employees of Bank of America).  It further states that Bank of America and Merrill Lynch knew they would be receiving money as part of the TARP stimulation program.  The letter continues

As a result of Merrill’s huge losses, taxpayers were forced to help Bank of America acquire Merrill by providing billions of additional TARP funds as well as insurance against losses from Merrill’s toxic portfolio. In short, the combined Bank of America-Merrill Lynch entity received $45 billion in taxpayer funds as well as $188 millon in taxpayer-funded insurance.

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Your refusal 10 reveal compensation information fuels distrust and cynicism at a most sensitive time.


Distrust and Cynicism, really?     Business as usual?     Oh, Barney, tell me it isn’t so!

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One Comment leave one →
  1. 20 October, 2009 21:15

    I saw Andrew Sorkin on Charlie Rose last night. I think he is weening himself off being a Wall St apologist as he too has come to realize the bankers’ folly (presumptuousness) in fighting attempts to regulate the industry so the crisis of 2008 doesn’t happen again. In case you are interested, I have just posted a piece based on his discussion.

    nice post!

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