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SEC tells Kucinich it is checking into Bank of America transparency on bonuses
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Candidate
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| Contributor | Craverguy |
| Last Edited | Craverguy Apr 16, 2009 05:01pm |
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| Category | Announcement |
| News Date | Tuesday, April 14, 2009 06:00:00 PM UTC0:0 |
| Description | The Securities and Exchange Commission is examining whether Bank of America improperly failed to tell shareholders about $3.6 billion in bonuses that Merrill Lynch gave employees before the companies merged and may penalize the bank if it finds wrongdoing, SEC Chairman Mary L. Schapiro said in a letter to Cleveland Democratic U.S. Rep. Dennis Kucinich.
"Where the SEC believes that there has been an omission of material facts necessary in order to make the statements not misleading, we will carry out our enforcement responsibilities with vigor and vigilance," said the letter, which Kucinich released on Monday.
If SEC concludes Bank of America "failed to provide required information in the proxy statement it used to solicit votes to approve the merger agreement, the remedy would not necessarily be to include that information in a proxy statement for a subsequent annual meeting," Schapiro's letter continued.
Kucinich, who chairs a congressional committee probing the bonuses, sent a letter last week that asked Schapiro about potential SEC action against Bank of America.
"There is no question that any reasonable BOA shareholder would have considered the Merrill bonuses to be material to their decision on whether to approve the merger," Kucinich's letter said. "The federal securities laws were designed to protect shareholders against precisely such omissions of material information."
SEC spokesman John Heine said the agency doesn't comment on correspondence it sends to members of Congress. |
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