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Cuomo: Paulson Kept SEC Out Of The Loop On B Of A

New York Attorney General Andrew Cuomo has just released documents from his investigation into Bank of America, its receipt of government money, and those billions in bonuses that went to Merrill Lynch executives.

Here's one quick nugget we found: It looks like then-Treasury Secretary Hank Paulson didn't keep the SEC -- whose role, of course, is to protect investors -- informed on the government's intense December 2008 discussions with B of A about Merrill's losses, and possible government assistance for B of A.


From a letter sent today by Cuomo to Congressional leaders:

Notably, during Bank of America's important communications with federal banking officials in late December 2008, the lone federal agency charged with protecting investor interests, the Securities and Exchange Commission, appears to have been kept in the dark. Indeed, Secretary Paulson informed this Office that he did not keep the SEC Chairman in the loop during the discussions and negotiations with Bank of America in December 2008.

We'll have more on this soon....


4 Comments

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Just as I suspected...Paulson is a crook...but then he was a Bush Man..isn't he?

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He's only a crook if it's a crime. Regrettably, crooked-as-hell thus far remains not-criminal-enough to prosecute officials in the Bush Regime. Hopefully, this will change very soon.

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Did he keep them out of the loop (active) or simply not bring them in (passive)?

What important role would the SEC have played in Dec. 2008 in this matter, if it had been included?

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Poor Hank and Ben. the gang that couldn't shoot straight. Not to worry as they will be bankrupted my a mountain of law suits to be filed on behalf of individual investors as well as institutional investors for not being informed as to the deal that was cut to save Merrill Lynch. The bonus issue is other whole can of worms.

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