BoA refutes SEC claims on Merrill bonus issue
26 Sep 2009
Bank of America Corp (BoA) formally denied US Securities and Exchange Commission (SEC) claims that the bank misled investors about $3.6 billion bonus payments while buying the troubled brokerage firm.
The SEC sued BoA on 3 August.
The bank said it is seeking an order dismissing the regulator's complaint.
"The complaint fails because the proxy statement did not contain any statements that were false or misleading," the bank said in its answer, adding that the complaint fails because the proxy statement did not omit to state material facts.
The bank's response was expected, and came 11 days after US district judge Jed Rakoff rejected its $33 million settlement with the SEC over the $3.6 billion of bonus awards.
In its answer to the SEC's complaint, BoA maintained that the proxy statement for the merger did not contain false or misleading statements, or omit key facts. It also said it was not negligent in preparing the proxy statement.
SEC spokesman John Heine said: "As we alleged in our complaint, Bank of America did not provide investors with complete and accurate information about the bonuses to be paid by Merrill Lynch to employees."
