×

BREAKING NEWS: Merrill Accused Of Misleading Congress

graphic_fast_money.jpg

In breaking news CNBC's Charlie Gasparino reveals that NY Attorney General Andrew Cuomo has accused Merrill Lynch of misleading Congress about bonuses.

According to Gasparino the question is whether former Merrill CEO John Thain expedited bonuses because he knew about losses.

Of course the question most investors want to know is -- if Thain misled Congress is it Bank of America’s problem, now? Gasparino isn’t sure but he says Cuomo’s office is using the fraud word.

Gasaprino is still working on the details but as you might remember, when Merrill and Bank of America merged back mid-September, the agreement granted the authority to pay bonuses of as much as $5.8 billion.

At issue is a Merrill Lynch board meeting on Nov. 11 where Thain asked the board to pay Merrill executives $3.2 billion in bonuses before the end of the year. Later, Merrill disclosed it had lost $15 billion.

People close to Cuomo's investigation say that if Thain moved up the timing of the bonuses, while knowing about future losses, he may be in violation of the Martin Act.

Read More:

> Merrill Misled Congress on Bonus Decisions, Filing Says



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Mar. 11th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (GDX), (MSFT); Najarian Owns (COF) Call Spread, (FCX) Call Spread, (GS) Call Spread, (PCU) Call Spread, (X) Call Spread, (XHB) Call Spread, (GLD) Put Spread; Najarian Owns (MS) & (MS) Calls; Karabell Owns (AAPL), (BHP), (FCX), (FXI), (GOOG), (GLD), (GE), (JPM); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Own (RIG); Finerman Owns (WFC) Preferred; Finerman's Firm Is Short (BBT), (IYR), (IJR), (IWM), (MDY), (SPY), (USO)

CNBC.com with wires