Skip to comments.Judge approves $2.43B Bank of America settlement
Posted on 04/07/2013 8:25:19 PM PDT by haffast
NEW YORK (AP) A New York judge has approved Bank of America's $2.43 billion settlement of a class action lawsuit brought by shareholders over the company's acquisition of former competitor Merrill Lynch.
A judge for the U.S. District Court for the Southern District of Manhattan approved the settlement Friday. The bank proposed the settlement in late September. The agreement resolves allegations that Bank of America did not disclose the state of its finances or those of Merrill Lynch when it agreed to buy Merrill in September 2008.
Judge Kevin Castel said the settlement was "hard fought," but called the final deal was "fair, reasonable and adequate."
"We are pleased that this matter has been resolved," said Bank of America spokesman Lawrence Grayson. A call seeking comment from the State Teachers Retirement System of Ohio, one of the plaintiffs in the case, was not immediately returned.
Bank of America said in September that it rejected the allegations and was agreeing to the settlement to end the uncertainties, burden and costs associated with the lawsuit.
The Charlotte, N.C., company agreed to buy Merrill Lynch for $20 billion in stock at the height of the financial crisis. The deal was struck the same weekend that Lehman Brothers collapsed. Bank of America later disclosed that Merrill Lynch was going to take $27.6 billion in losses that year. Bank of America later asked for a $20 billion bailout from the federal government to help counteract those losses. It had already received $25 billion in bailout funds.
(Excerpt) Read more at news.yahoo.com ...
Bank of America Pays Montag More Than CEO Moynihan for 2012
Published March 28, 2013 Dow Jones Newswires
The head of Bank of America Corp.'s (BAC) investment bank got a bigger paycheck than the bank's top executive, Brian Moynihan, according to a regulatory filing Thursday.
Mr. Moynihan was awarded $12 million in cash and stock for 2012, while Thomas Montag, co-chief operating officer and head of Bank of America Merrill Lynch, received $14.5 million in cash and stock, according to the filing.
The bank also awarded raises to its top executives as of Feb. 1. Mr. Moynihan received a $1.5 million raise to his base pay for this year, while Mr. Montag and co-chief operating officer David Darnell received a $1 million increase to their base salaries. The third-highest paid executive at the bank was chief financial officer Bruce Thompson, who made $11 million in cash and stock in 2012. Mr. Darnell made $9.5 million and general counsel Gary Lynch made $7 million.
M&T Bank CEO Wilmers Rails Against 'Astronomical' Banker Pay
Fox News Business ^ | March 07, 2013 | Dow Jones Newswires
Our tax dollars at work.
I guess the lawyers get like a billion dollars, and the plaintiffs will get some coupons.
No, you get actual cash in these lawsuits. Not much, but some.