More Videos
- GM to Start Repaying US Government Loan
- Lowe's Meets Third-Quarter Profit Expectations
- Cisco Ups Tandberg Bid, Claims Over 40% Backing
- 'Significant Weakness' Still Ahead: Fed's Hoenig
- BlackRock: Central Banks To Be Net Buyers of Gold
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- Washington Not Trying to Contain China: Obama
- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- How Much Do You Know About Green?
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
MOST SHARED
- U.S. May Wind Up Green With Envy
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- EADS Cautious on Full-Year Forecast after Earnings Dip
- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- Taking a Page from Obama's Asia Agenda in Investing
- Thai Economy to Grow up to 3.5% in 2010: Prime Minister
Text Size 
 |
AP |
New York State Attorney General Andrew Cuomo filed a motion Monday asking former Merrill Lynch Chief Executive John Thain to provide more information about bonuses paid out on the eve of the bank's merger with Bank of America last year.
Cuomo's office alleges that Thain is not answering the questions under instructions from Bank of America [BAC
Loading...
()
], and as a result, the bank is interfering with its investigation of the bonus payments.
In a deposition last week, Thain refused to answer questions about how the bonuses were determined for certain individuals, citing instructions from Bank of America attorneys.
The filing in New York State Supreme Court follows a deposition of Thain on Feb. 19. Cuomo last week subpoenaed Bank of America Chairman and Chief Executive Kenneth Lewis.
Two weeks ago, Cuomo accused Merrill Lynch of "secretly" accelerating bonus payments last year and giving at least $1 million to each of nearly 700 employees, even as the brokerage was
amassing billions of dollars in losses.
The bonuses stirred controversy because Merrill's bigger than expected loss prompted Bank of America to seek more government bailout money to complete the acquisition. The government agreed to give Bank of America an additional $20 billion in January to absorb Merrill, which Bank of America agreed to buy last September amid the credit crisis.
Cuomo's office is focusing on allegations that the timetable for the bonus approval was accelerated given the $15 billion fourth-quarter loss at Merrill, sources said.
Thain was dismissed from Bank of America last month following the revelation of the huge and unexpected loss at Merrill.
More from CNBC.com:
- Citigroup In Talks to Give Government Bigger Stake
- US Regulators Stand Ready With More Bank Capital
- Rick Santelli's Shout Heard 'Round the World —Reuters contributed to this report.
Print
Email
- Where, what, how.
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
- Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
Data is a real-time snapshot *Data is delayed at least 15 minutes