Bank of America charged with Fraud

The New York Attorney General's office announced today that they're charging Bank of America and its former CEO Ken Lewis with fraud. The charges stem from BofA's disastrous merger with Merrill Lynch and their alleged failure to disclose important information about the deal to shareholders or the federal government.

This investigation drives right to the heart of the financial crisis and taxpayers deserve to have all the facts. Tell Bank of America to come clean with all the information surrounding the Merrill Lynch deal

If proven true, these fraud charges could expose the shady nature of the deals made behind closed doors that helped fuel our economic collapse. And they'll send a powerful message to Wall Street's CEOs: You can't expect to crash our economy, take our money, and walk away scot-free.

Stand up for transparency in the big banks - call on Bank of America to come clean with all the information surrounding these charges.

Actions have consequences. The truth matters. Let Bank of America know that taxpayers will continue to seek the truth, and we will hold them accountable for their actions.

Attorney General Cuomo says;

"We believe the bank management understated the Merrill Lynch losses to shareholders, then they overstated their ability to terminate their agreement to secure $20 billion of TARP money, and that is just a fraud," Cuomo said at a press conference. "Bank of America and its officials defrauded the government and the taxpayers at a very difficult time."

Cuomo said Bank of America scheduled a shareholder vote to approve its plan to buy Merrill on Dec. 5, 2008. By that date, Merrill incurred losses of more than $16 billion, Cuomo said. Bank of America's management, including Lewis and Price, knew of the losses and knew that more were coming, Cuomo said.

Bank of America's response;

"The decision by Mr. Cuomo to sue Bank of America, Mr. Lewis and other executives in connection with BofA's acquisition of Merrill Lynch is a badly misguided decision without support in the facts or the law," said Mary Jo White of Debevoise & Plimpton LLP in New York, who represents Lewis. "There is not a shred of objective evidence to support the allegations by the Attorney General."

Sources:  BusinessWeek,
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