Bank of America reached a settlement with New York State, agreeing to pay $15 million to settle allegations related to the acquisition of Merrill Lynch in 2008. According to the NY Attorney General’s office, Bank of America withheld material financial information from investors regarding the financial health of Merrill Lynch prior to shareholder approval of the Bank of America-Merrill Lynch merger. Bank of America also agreed, as part of the settlement, to adopt a multitude of safeguards to protect investors. Bank of America’s former CEO, Kenneth Lewis, agreed to pay $10 million to the state and will be barred from holding a position as an officer or director of a public company for three years. According to the AG’s office, this is “one of the first successful attempts by law enforcement to hold accountable a CEO or individual at a major institution since the financial crisis.”

Read the NYT Article, “Bank of America to Pay $6.3 Billion to Settle Mortgage Securities Suit”
Read the NY AG’s Press Release, “A.G. Schneiderman Announces Former CEO Kenneth Lewis Barred For 3 Years From Serving As Officer Or Director Of Any Public Company”