August 7, 2009
The SEC’s “Holy Cow” Moment: Judge May Overturn BofA’s Settlement over Merrill Lynch Bonuses
– Broc Romanek, CompensationStandards.com
As I head out for a two-week email-free vacation (I have some blogs tee’d up to go out while I’m gone), I have to admit surprise by Judge Jed Rakoff’s decision to not approve this week’s settlement between the SEC and Bank of America over allegations of misleading proxy materials because the bonus obligations due to Merrill Lynch employees were not fully disclosed.
BofA had agreed to pay a $33 million fine, which I suggested recently was on the high side for a non-scienter violation. Personally, I thought the SEC was trying a new approach and acting fast – as bringing charges against individuals will take considerably longer. Take my poll below to express what you think.
According to this Reuters article, the Judge’s order states: “Despite the public importance of this case, the proposed consent judgment would leave uncertain the truth of the very serious allegations made in the complaint.” The order is linked from this “WSJ Law Blog.” Judge Rakoff will hold a hearing on the case on Monday in his US District Court, Southern District of New York.
Poll: The SEC and Bank of America Settlement
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