After announcing his retirement in September and watching BofA embark on a wild goose chase to find a successor, former CEO Ken Lewis may have thought he was in for a long vacation complete with shuffleboard and pineapple rum drinks.
Sadly for him, that's not the case. New York Attorney General Andrew Cuomo has filed charges against him and former CFO Joseph Price, alleging that the pair failed to disclose losses at Merrill Lynch before obtaining shareholder approval to acquire it.
In December 2008, shareholders gave the green light to acquire Merrill, unaware that the firm had built up $16 billion in losses for the fourth quarter. BofA didn't see fit to mention it until January 2009, when the government gave it $20 billion more to help with the absorption.
In a separate deal, the SEC and the bank just arrived at a $150 million settlement concerning those very same allegations.
No rest for the weary, eh? (
WSJ)
Finance Hubs (FINS)
Want to work outside New York's concrete jungle? Take a look at our list of the top finance hubs for those not in the Empire State of mind.
What Civil War? (Lanka Business Online)
HSBC is the one of the boldest banks out there -- it's opening a branch in Sri Lanka's former war zone. Here's to the end of civil unrest and the start of commerce.
No New Rules (SmartMoney)
Goldman and
JPMorgan executives came out swinging against the Volcker rule at yesterday's Senate hearing. This isn't much of a surprise because the banks would have to essentially restructure everything, and that's just labor-intensive.
Lazard's Lasers (WSJ)
Lazard said it was going to try to lure Wall Street bankers averse to small cash salaries. It's sweetening its own compensation as well, paying out 70% of revenue, but that also led to a fourth-quarter loss. Even trade?
British Confusion (Telegraph)
The FSA's new announcements on bonuses and clawbacks have thrown recruiters for a loop, causing chaos in the City job market. No one knows whether people can move where, or how, or why, until the government explains what's going on.
Dissolving Trust (NYT)
New customer advocacy rankings show which banks consumers trust the least. Bank of America, which has taken a beating in the court of public opinion, came in first. That is, last, depending on how you look at it.
Betting on Death (FINS)
A new market for longevity swaps could lead to new jobs for those able to project the life expectancy of pensioners. Sounds macabre to us, but we bet Tim Burton would be into it.
2010 Turnaround (BusinessWeek)
M.B.A.s might be in luck. The job outlook for bschool grads is rumored to be improving, despite the number of '09ers who are still unemployed.
Calling Wannabe CFAs (WebCPA)
The American College, a nonprofit that offers financial-services certification programs, is waiving its new-student fee of $130 for those who register by Feb. 26.
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