Attorney General Cuomo to Keep After B of A

lewisThe question is, did Bank of America executives  mislead investors into voting in favor of their take over of Merril Lynch?  Today, reported that New York Attorney General Andrew Cuomo sent Bank of America’s representation a letter threatening to file charges unless they testified about how Cheif Executive Ken Lewis and friends conviced share holders to take on the tanking Merril Lynch. B of A has until Septemeber 14th to reply.

Unfortunately for Cuomo, who may run for Governor of New York next year, all of this gets much murkier. In May B of A executives were asked to testify before Congress on their acquisition of Merril Lynch. To the chagrin of many, Lewis testified that last year then Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke pressured him to do whatever he could to purchase Merril Lynch.

B of A has see controversy before. In 2004 they were forced to amend their code of ethics amid accusations that executives were allowing improper trading. But given the possible involvement of  Bernanke, Cuomo’s political aspirations, and Bank of America’s unprecedented $2.4 billion 2nd quarter profit this fiasco may be swept under the rug faster than 2004’s.


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