SEC files another lawsuit against BofA
The Securities and Exchange Commission has filed a new lawsuit against Bank of America. The SEC says the bank failed to disclose several billion dollars in Merrill Lynch losses before the two companies merged. WFAE's Greg Collard reports. The SEC says that Bank of America knew about $4.5 billion in Merrill Lynch losses in October of 2008, and billions more the following month, but did not tell shareholders until they approved the merger. Bank of America spokesman Bob Stickler says the lawsuit has no merit. "The company and its officers provided sufficient and appropriate disclosure prior to the shareholder vote prior to December last year (2008). Merrill Lynch had five straight quarters of multi-billion dollar losses and the losses known to the company before the shareholder meeting were in line with that history," Stickler says. The SEC wanted to amend another lawsuit to include these latest charges, but a federal judge rejected that request. In that other case, the SEC accuses Bank of America of hiding from shareholders several billion dollars in bonuses it approved for Merrill Lynch employees. That case is scheduled to go to trial in March.