New York Prepares Securities & Fraud Charges Against BoA over Merrill Lynch Bonuses

According to CBS:

The New York Attorney General's office is preparing charges against several high-ranking Bank of America executives over the bank's alleged failure to disclose details about its acquisition of Merrill Lynch, according to a person familiar with the investigation.

Attorney General Andrew Cuomo's office is likely to file civil charges against the executives over their role in failing to alert shareholders to mounting losses as well as accelerated bonus payments at Merrill, said the person, who requested anonymity because no charges have been filed yet.

These would be securities fraud charges.

More Things Change , More they Stay the Same...

Such as Wall Street bonuses. The Guaranteed Bonuses are back. You know the bonuses that traders and other get regardless of performance.

Kenneth Feinberg, Obama Administration's "Pay Czar" is supposedly on the case. He is reviewing the compensation plans of seven companies that received two or more federal bailouts. Good luck with that.

Here is an idea: Ban the Practice of Guaranteed Bonuses. Financial conglomerates operate in a regulated industry (despite the incompetence/ignorance of the regulators). If we are going to do nothing to stop "too big to fail" financial conglomerates from getting even bigger than taxpayers need protections and banning the practice of guaranteed bonuses is one of them.

This what an a pay consultant said about the practice:

Hunt 'em Down - 19 States Launch Fraud Probe into AIG Financial Products Unit - Focus on Bonuses

Get out the dogs, sic' those bastards! Hang 'em high! The public lynching continues on AIG bonuses with this latest action: 19 States Launch Fraud Probe:

To ensure the investing public, as was promised, that money received by the company is being utilized to improve the financial welfare of the company, not to pad the pockets of the same individuals who led to the financial crisis in the first place.

The actual letter is here.

While I am thrilled there is increasing focus on derivatives, structured finance, I'm not so sure focusing in on individuals will get to the bottom of this Ponzi scheme. We have structured financial products all over, everyone was in on this game, not just AIG.