Bank of America Settles S.E.C. Suit Over Merrill Deal (Bet you haven't heard this one)

The New York Times ^ | August 3, 2009 | Zachary Kouwe

[khnyny]

The Securities and Exchange Commission accused Bank of America on Monday of misleading investors about plans to pay billions of dollars in bonuses at Merrill Lynch, the troubled brokerage giant it bought last year.

The development once again turns an uncomfortable spotlight on a defining moment of the financial crisis — the ill-starred merger of Bank of America and Merrill — and on Bank of America’s embattled chief executive, Kenneth D. Lewis.

The $50 billion merger, completed at the behest of federal officials, has been the subject of heated hearings in Congress, as has the question of who knew what, and when, about the Merrill bonuses. Those bonuses were paid despite mounting losses that soon forced Bank of America to seek a second lifeline from Washington.

[khnyny]

The suit was filed by the SEC today and was settled about an hour later. If you blinked, you missed it.

[Boardwalk]

I guess we know were some of that stimulus money went.

[khnyny]

Here’s another good link:

http://www.zerohedge.com/article/sec-charging-bank-america-making-false-and-misleading-statements

[ding_dong_daddy_from_dumas]

Hmmmmm. Paulson and Bernanke again......

[khnyny]

This is another good one for your list:

http://www.freerepublic.com/focus/f-news/2308445/posts

[ladyjane]

The White House hates the president of Bank of America, Ken Lewis, because he told the truth, under oath, that he was threatened by the administration.

One day before a shareholders meeting the White House leaked information that BoA was in trouble. It caused an uproar. This suit is just another of a series of attacks.

Obama will not be satisfied until he puts BoA and specifically Ken Lewis the president six feet under.

[khnyny]

I think you’re right.

[ladyjane]

How Ken Lewis has survived thus far is a miracle.

People may not like BoA and may think all bank executives are overpaid but thousands of people work for that bank. Many of them are little people, struggling to get by. The attacks on that bank just shows how evil the current administration is.

[khnyny]

Imho, in this administration, you’re either part of the “in crowd” or you’re not. If you understand what I’m saying.

[ding_dong_daddy_from_dumas]

From that article:

The situation was so bad that when outside consultants were called in a few weeks before the bailout, senior executives were unable to answer even the most basic questions about their company — like, for instance, how much exposure the firm had to the residential-mortgage market.

I wonder if anybody knows, even now, how much red ink AIG has.

[stephenjohnbanker]

“Hmmmmm. Paulson and Bernanke again......”

Hey, how about that? ;-)

[April Lexington]

The NEXT president needs to appoint Texans to Treasury and the Fed. Enough of this East Coast elitist crap...

[ding_dong_daddy_from_dumas]

If Paluson and Bernanke knew how bad Merrill’s ledger was but they didn’t care whether the BofA shareholders knew about it, what does that say about them?

[stephenjohnbanker]

It says they are cutthroat, amoral, unethical SOB’s.

[stephenjohnbanker]

As long as the Ivy League elitists control politics, that, sadly, will not happen. I wish I could pass a couple of laws:

1) No lawyers for POTUS.

2) No Ivy League graduates for POTUS.

[csmusaret]

Wasn’t Lewis threatened by the previous administration?

[ladyjane]

Wasn’t Lewis threatened by the previous administration?

I'm sure we'll never hear the entire story but apparently BoA was pressured by the Treasury to acquire Merrill Lynch. Lewis was put under oath by the New York AG and testified about the pressure and threats. That made the current administration VERY unhappy. They've been out for his head ever since.

[ding_dong_daddy_from_dumas]

Goldman apologists say that we don't like Goldman because the company has a Jewish name, but that's not it. I think they are Ferengi in disguise.

Some of may favorite Ferengi rules:

33 and 35. War is good for business, peace is good for business.

239 "Never be afraid to mislabel a product." Like "toxic assets" with a AAA rating?

Ferengi Rules of Acquisition:

Number Rule Source
1 Once you have their money, you never give it back. DS9: "The Nagus", "Heart of Stone"
3 Never pay more for an acquisition than you have to. DS9: "The Maquis, Part II"
6 Never allow family to stand in the way of opportunity.[1] DS9: "The Nagus"; ENT: "Acquisition"
7 Keep your ears open. DS9: "In the Hands of the Prophets"
9 Opportunity plus instinct equals profit. DS9: "The Storyteller"
10 Greed is eternal. DS9: "Prophet Motive"; VOY: "False Profits"
16 A deal is a deal.[2] DS9: "Melora"
17 A contract is a contract is a contract ... but only between Ferengi. DS9: "Body Parts"
18 A Ferengi without profit is no Ferengi at all. DS9: "Heart of Stone"
21 Never place friendship above profit. DS9: "Rules of Acquisition"
22 A wise man can hear profit in the wind. DS9: "Rules of Acquisition"; VOY: "False Profits"
23 Nothing is more important than your health ... except for your money. ENT: "Acquisition"
31 Never make fun of a Ferengi's mother.[3] DS9: "The Siege"
33 It never hurts to suck up to the boss.[4] DS9: "Rules of Acquisition", "The Dogs of War"
34 War is good for business[5] DS9: "Destiny", "The Siege of AR-558"
35 Peace is good for business.[6] TNG: "The Perfect Mate"; DS9: "Destiny"
45 Expand or die.[7] ENT: "Acquisition"
47 Never trust a man wearing a better suit than your own. DS9: "Rivals"
48 The bigger the smile, the sharper the knife. DS9: "Rules of Acquisition"
57 Good customers are as rare as latinum. Treasure them. DS9: "Armageddon Game"
59 Free advice is seldom cheap. DS9: "Rules of Acquisition"
62 The riskier the road, the greater the profit. DS9: "Rules of Acquisition", "Little Green Men"
74 Knowledge equals profit. VOY: "Inside Man"
75 Home is where the heart is, but the stars are made of latinum. DS9: "Civil Defense"
76 Every once in a while, declare peace. It confuses the hell out of your enemies. DS9: "The Homecoming"
94 Females and finances don't mix. DS9: "Ferengi Love Songs", "Profit and Lace"
95 Expand or die. VOY: "False Profits"; ENT: "Acquisition"[7]
98 Every man has his price. DS9: "In the Pale Moonlight"
102 Nature decays, but latinum lasts forever. DS9: "The Jem'Hadar"
103 Sleep can interfere with your lust for latinum.[8] DS9: "Rules of Acquisition"
109 Dignity and an empty sack is worth the sack. DS9: "Rivals"
111 Treat people in your debt like family ... exploit them. DS9: "Past Tense, Part I", "The Darkness and the Light"
112 Never have sex with the boss's sister. DS9: "Playing God"
125 You can't make a deal if you're dead. DS9: "The Siege of AR-558"
139 Wives serve, brothers inherit. DS9: "Necessary Evil"
168 Whisper your way to success. DS9: "Treachery, Faith and the Great River" - A man is only worth the sum of his possessions.[9] ENT: "Acquisition"
190 Hear all, trust nothing. DS9: "Call to Arms"
194 It's always good to know about new customers before they walk in your door. DS9: "Whispers"
203 New customers are like razor-toothed gree-worms. They can be succulent, but sometimes they bite back. DS9: "Little Green Men"
208 Sometimes the only thing more dangerous than a question is an answer. DS9: "Ferengi Love Songs"
211 Employees are the rungs on the ladder of success. Don't hesitate to step on them. DS9: "Bar Association"
214 Never begin a negotiation on an empty stomach. DS9: "The Maquis, Part I"
217 You can't free a fish from water. DS9: "Past Tense, Part I"
229 Latinum lasts longer than lust. DS9: "Ferengi Love Songs"
239 Never be afraid to mislabel a product.[10] DS9: "Body Parts"
263 Never let doubt interfere with your lust for latinum. DS9: "Bar Association"
285 No good deed ever goes unpunished. DS9: "The Collaborator", "The Sound of Her Voice" [edit] Unofficial Rules The following sayings were either not given a number, not explicitly stated to be a Rule, or were not part of the generally-accepted canon by the Ferengi Commerce Authority. Number Rule Source
142 Only fools sell wholesale. (See Rule #141)
286 When Morn leaves, it's all over. DS9: "The House of Quark"
299 After you've exploited someone, it never hurts to thank them. That way, it's easier to exploit them next time.[11] VOY: "False Profits"
— Exploitation begins at home. VOY: "False Profits"
(The unwritten rule) When no appropriate rule applies, make one up. VOY: "False Profits"
— When the messenger comes to appropriate your profits ... kill the messenger. VOY: "False Profits"
— Time, like latinum, is a highly limited commodity. DS9: "Bar Association"
— Always inspect the merchandise before making a deal.[12] DS9: "The Abandoned"
— Money is money, but females are better.[13] DS9: "Life Support"
— Why ask, when you can take?[14] DS9: "Babel"
— A good lie is easier to believe than the truth.[15] VOY: "Shattered"
— If that's what's written, then that's what's written.[16] DS9: "Favor the Bold"

[stephenjohnbanker]

“”Never be afraid to mislabel a product.” Like “toxic assets” with a AAA rating? “

ROTFLMAO!!

[stephenjohnbanker]

“Employees are the rungs on the ladder of success. Don’t hesitate to step on them.”

John Thain

[ding_dong_daddy_from_dumas]

I think you could morph this face into a Ferengi.

[stephenjohnbanker]

Ah, the guy who placed the Goldman Sachs owned trading system “Archipelago” in the NYSE, thus wiping out all the floor traders ? That guy? Yeah, he qualifies as a Ferengi ;-)