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Court: B of A Must Reveal Names Of Merrill Bonus Recipients
While we've all been focused on those AIG bonuses, there's been a major development in the Wall street bonus saga that seemed, a week ago, like the ultimate in outrageous corporate behavior.
A court ruled yesterday that Bank of America will have to turn over to New York Attorney General Andrew Cuomo the names of the Merrill Lynch employees who received a total of $3-4 billion in bonuses. Bank of America, which since the start of the year has owned Merrill, had been resisting giving Cuomo the information.
Cuomo said he could release the names as soon as today.
Merrill approved the bonuses last December under then-CEO John Thain, on an accelerated schedule, apparently to ensure they went into effect before the firm came under the control of B of A.
Josh
Zachary
Anybody ever turn on the kitchen light and saw roaches scurrying into the dark corners?
March 19, 2009 2:07 PM | Reply | Permalink
The Braden v. Wal-Mart Stores, Inc. et al. ERISA complaint was filed in the United States District Court Western District of Missouri on behalf of Plaintiff and a class (the “Class”) of all persons who were participants in or beneficiaries of the Wal-Mart Profit Sharing and 401(k) Plan (the “Plan”), between January 31, 2002 and the present (the “Class Period”).
Defendant: Wal-Mart Stores Inc,
Amount Demanded: $75,000,000.00
“The complaint goes further, in alleging that Plan trustee Merrill Lynch & Co. Inc. received revenue-sharing and other, unspecified kickback payments via Plan investment options, without actually providing any services to the Plan, the suit alleges.”
http://www.lawyersandsettlements.com/articles/10446/mutual-fund-erisa-wal-mart.html
The trustee function of the Plan is performed by Merrill Lynch Investment Managers LLC (Trustee). The Trustee receives and holds contributions made to the Plan in trust and invests those contributions as directed by participants and according to the policies established by the Retirement Plans Committee.
The Trustee makes payments from the Plan in accordance with the Plan document. The Trustee is affiliated with Merrill Lynch, Pierce, Fenner & Smith, Inc., the parent corporation of the Trustee and manager of the Merrill Lynch Equity Index Fund and the Merrill Lynch Retirement Preservation Fund, which are investment options offered under the Plan to participants. The Trustee is also the recordkeeper for the Plan.
According to U.S. District Judge Gary A. Fenner of the U.S. District Court for the Western District of Missouri , who cited Department of Labor reports, the Wal-Mart plan had 1,062,033 participants with net assets of $9.89 billion as of January 31, 2007. During the time addressed in Braden’s suit, the plan has featured 10 mutual funds, a common/collective trust, Wal-Mart common stock, and a stable value fund as investment options. Fenner said the mutual funds are all offered through retail class shares and most are actively managed, both of which, the court noted, typically involve higher expenses/fees.
Seven of the 10 mutual funds charge 12b-1 fees, collecting over $26 million in 12b-1 fees over the period involved in the suit, Fenner said, noting that comparable options were available that did not charge 12b-1 fees. The 10 funds’ fee structure also includes a revenue-sharing charge.
March 20, 2009 2:37 AM | Reply | Permalink