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Report: Cuomo Subpoenas Thain On Bonuses
CNBC's Charlie Gasparino just reported that New York Attorney General Andrew Cuomo has subpoenaed former Merrill Lynch CEO John Thain for testimony about Merrill's awarding of billions of dollars in bonuses in December.
Cuomo has been investigating the decision by Merrill to award the bonuses -- and in particular, the allegation that they were made on an accelerated schedule, before Bank of America took control of the company January 1.
Gasparino added that Bank of America chief administrative officer J. Steele Alphin, who Thain has claimed was aware of the bonuses, has also been subpoenaed.
Gasparino suggested that Cuomo could ultimately bring charges of criminal fraud against those involved in the payouts, under the Martin Act.
This looks like it could get should get interesting...
Late Update: CNBC has now posted a written story.
And here's Cuomo's statement on the subpoenas.
Josh
Zachary
I would hope these clowns ARE prosecuted at the lower levels of government, considering all the accountability at the higher levels will b e born by us commoners through taxes, layoffs, homes lost, etc.
Also, I believe when these folks sell or give their property to their spouses, relatives, etc. to avoid having them in their name in case of convictions and repayments... it also is a crime, and they can have additional charges added to the others... IMHO
January 27, 2009 11:24 AM | Reply | Permalink
I want to see CitiGroup give back that $50 million.
January 27, 2009 12:44 PM | Reply | Permalink
Think big! I want to see Citi give back $50B or more!
January 27, 2009 1:54 PM | Reply | Permalink
Tough week for Johnny. Probably the first time in his life his decisions have been called into question But...is he really out there flapping in the wind or can he say there was a board that approved the bonuses as well?
PS: Why are you still identifying him in the picture as the CEO of Merill (sic)?
January 27, 2009 2:12 PM | Reply | Permalink