When BHP Billiton made its offer to acquire Potash Corp., two residents of Madrid, Spain, made $1.1 million by buying out-of-the-money call options ahead of the announcement, the Securities and Exchange Commission claims. The SEC is suing the investors, and has frozen $1.1 million of their assets.
New York Attorney General Andrew Cuomo has sued Bank of America over its Merrill Lynch takeover, claiming it failed to disclose what bad shape Merrill was in before shareholders voted on the deal. Responses to the charges have been filed, with ex-CEO Ken Lewis' the most aggressive.
Two Marsh & McLellan executives who were convicted in an insurance industry bid-rigging case saw their convictions overturned Wednesday because the New York Attorney General's office failed to turn over 700,000 documents, including exculpatory and impeaching evidence.
In this climate, any banker in his right mind will think twice before taking more than the usual share of risk. And generally, low risk equals low profits. Plus, financial reform could cut off some of Wall Street's most lucrative income streams.
So, now that Judge Rakoff has excerpts from depositions N.Y. Attorney General Andrew Cuomo collected on BofA's knowledge of Merrill's losses, what's he going to do on Monday, when he's promised to rule on the proposed BofA-SEC settlement?
New York Attorney General Andrew Cuomo filed a lawsuit accusing Former Bank of America CEO Kenneth Lewis of misleading investors about Merrill Lynch's mounting losses before Bank of America acquired the firm in late 2008. The bank and its former chief financial officer, Joseph L. Price, were also charged.
