Written by: Michael Shedlock
On April 24, I wrote Let the Criminal Indictments Begin: Paulson, Bernanke, Lewis.
You will be pleased to read Ex-BofA chief Lewis charged with fraud.
New York Attorney General Andrew Cuomo said Thursday it was bringing civil charges against senior Bank of America (BAC) executives, including former company CEO Ken Lewis, for their role in the company’s controversial purchase of Merrill Lynch.
Cuomo’s office, which has been aggressively pursuing an investigation into the merger and subsequent bonuses paid to former Merrill employees, said it was charging Lewis and Bank of America’s former chief financial officer Joe Price with fraud.
The lawsuit contends that the bank’s management team understated the losses at Merrill in order to get shareholders to approve the deal, then subsequently overstated the firm’s willingness to terminate the merger to regulators weeks later in order to get $20 billion of additional aid from the federal government.