BofA Hid Merrill Losses Prior To Merger: SEC

Law360, New York (January 12, 2010, 7:35 PM EST) -- The U.S. Securities and Exchange Commission has accused Bank of America Corp. of violating federal proxy rules by failing to disclose multibillion dollar losses at Merrill Lynch & Co. prior to a December 2008 shareholder vote to sign off on a merger between the two companies.

The lawsuit, filed Monday in the U.S. District Court for the Southern District of New York, alleges that the bank learned prior to the shareholder vote that Merrill had incurred a net loss of $4.5 billion in October 2008 and...
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