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Cuomo: Merrill Misled Congress On Bonuses

It looks like Andrew Cuomo has escalated things in the Merrill Lynch bonus probe.

Cuomo is now accusing the firm of misleading Congress on the matter. In a court filing made yesterday, according to the Wall Street Journal, Cuomo included a November 24th letter, sent by Merrill to a House oversight committee, assuring lawmakers that no decisions on yearly bonuses had yet been made. Cuomo also filed testimony from a Merrill director, saying that on November 11th, the firm's compensation committee had decided that Merrill would pay bonuses in December, rather than January, when bonuses were usually paid (and when the firm would be under the control of Bank of America.)

Cuomo is trying to convince a judge to force Bank of America to disclose information about who got the bonuses -- which the company has so far been refusing to do.

The House Oversight committee, chaired at the time by Rep. Henry Waxman (D-CA), had asked Merrill for information on the bonuses, as part of an effort to ensure that the firm wasn't using bailout money for compensation.

There's another interesting nugget in the Journal's report:

Mr. Cuomo also disclosed that John Thain, Merrill's chairman and chief executive, was told that he would lose any chance of succeeding Kenneth Lewis as CEO of Bank of America if Mr. Thain kept pressing Merrill directors last fall for a 2008 bonus of as much as $40 million.

"He was told very strongly that you should not do that; that you would damage yourself with the Bank of America board if you do that, and if you ever wanted a chance to be in the running for my job, then that would eliminate it," Mr. Lewis said in his testimony last month, according to the filing.

Thain soon lost his chance to succeed Lewis anyway, as he was ousted in mid January amid anger over the bonuses and Merrill's massive fourth quarter losses.



4 Comments

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Four separate, indictable offenses:

They lied to Congress -- perjury.

They diverted funds to their own use that their company did not even have -- misappropriation of funds, or even embezzlement.

They are lying to or hiding information from a criminal investigation -- perjury, obstruction of justice.

They have collaborated in carrying out all of the above actions -- conspiracy, racketeering.

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Don't forget non-specific douchey behavior by a public company which is only a misdemeanor under NY penal code but could be an important factor at sentencing.

(Why don't we have petty little laws to boost the prison time of corporate crooks like we do for drug offenses?)

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I want to see this ending up with indictments and Mr Lewis in jail! Shank of America has no shame and karma will come around and bite him in the ass!

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"Cuomo is now accusing the firm of misleading Congress"

Is Cuomo going to send "The Firm" to jail for misleading Congress?

When will he stop protecting the individuals involved and start naming names instead of stating that "the Firm" did this or that?

This is atarting to sound like a John Grisham novel.
.

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