SEC Settles with BofA While New York Attorney General Sues

According to the New York Times, the Securities and Exchange Commission reached a long-awaited settlement with Bank of America over accusations that the financial giant withheld information from shareholders about Merrill Lynch losses when BofA took over the firm. Yet in the wake of the $150 million settlement, which was reached after a federal judge excoriated the SEC for attempting to settle for $33 million, New York Attorney General Andrew Cuomo filed civil fraud charges against former BofA CEO Kenneth Lewis and CFO Joe Price. The case stands out in sharp relief against the SEC’s case, which focused on Bank of America as a corporate entity, rather than the culpability of individual officers.