Bank Of America To Pay $33-Mn Fine For Misleading Bonuses

Started by jayanthi mandhalapu, Aug 06, 2009, 03:12 AM

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jayanthi mandhalapu

The Bank of America has agreed to pay the US regulators a fine of $33-million for misleading its investors about billions of dollars in bonuses paid to Merrill Lynch executives when it acquired the investment bank.

Bank of America, while waiting for stockholder approval of the deal to acquire Merrill Lynch, said that Merrill would not pay year-end bonuses to its executives. But a deal was already struck with Merrill Lynch, which allowed the payment of $5.8 billion bonuses.

According to SEC, the stockholders were misled by informing that no bonuses would be paid, while the companies had actually already agreed on a payment plan. This information must be disclosed under financial regulations.

"As Merrill was on the brink of bankruptcy and posting record losses, Bank of America agreed to allow Merrill to pay its executives billions of dollars in bonuses. Shareholders were not told about this agreement at the time they voted on the merger," David Rosenfeld, associate director of the SEC in New York said in a statement.
Be Happy And Always Remain So

dhoni

like this many bank have cheatd with shareholder t have with out paying profit
they have obeyed that to pay fine

Sathishboss

In India, Hcl does the same.

Instead of releasing there compensation paper for employees in June - July 2015. I have got info that only by end of Aug 2015 few people got there compensation letter.

Think how much money hcl technologies saved by holding the compensation information for there employees more than 45 days.

Hope hcl employee strength in 2015 could be 1.5 lakh head counts x minimum hike 3,000 rs Indian rupees salary = 450000000 Indian rupees for an month.

Yes 30 days savings for hcl is 45 crore , you have counted right. All just a simple math for holding an compensation letter for 1 month.

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