Lawmakers Want Details About Bank of America, Merrill Lynch Bonuses
New York Attorney General Andrew Cuomo and U.S. Rep. Barney Frank are demanding Bank of America CEO Ken Lewis immediately reveal details regarding individual bonuses that Merrill Lynch paid to employees in December. Bank of America, which acquired Merrill Lynch on Jan. 1, has repeatedly tried to keep executive pay data confidential.
Bank of America may be fighting a losing battle. In a March 9 letter to Lewis, Cuomo and Congressman Frank said any information pertaining to bonuses must be made public because Bank of America received $45 billion as part of the government’s banking rescue program. As a recipient of those funds, Bank of America is obligated to keep taxpayers informed about how their money has been spent.
An investigation into the timing of nearly $4 billion in bonuses paid by Merrill Lynch to certain employees was first launched by in December 2008 by the New York Attorney General’s office. Bank of America distributed about $3.3 billion in bonuses. Among other things, Cuomo wants to know whether Merrill and BofA failed to give adequate disclosures to shareholders about the bonuses, as well as the $15 billion loss incurred by Merrill Lynch in the fourth quarter.
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