Bank of America has good Merrill Lynch news

Brian Moynihan With Batphone

Bank of America won’t face damages claims related to its 2009 Merrill Lynch acquisition in a lawsuit filed by the New York Attorney General’s Office.

Bloomberg News reports that New York Attorney General Eric Schneiderman is still pursuing the case without the damages claim, Matt Mittenthal, a spokesman for the office, said Friday. The lawsuit also seeks an injunction barring individuals from the securities industry and from serving on public boards.

The state has accused Bank of America of misleading shareholders about losses at Merrill Lynch to win approval of the $18.5bn deal and then manipulating the federal government into contributing bailout funds from the Treasury Department’s Troubled Asset Relief Program to complete it.

The bank has faced regulatory probes, investor lawsuits and criticism from lawmakers over claims it didn’t warn shareholders about spiralling losses at Merrill before they voted to buy the brokerage in January 2009.

Hit the link below to access the complete Bloomberg News article:

Bank of America Won’t Face New York’s Merrill Deal Damages Claim

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