见识老千：Former BofA CEO Ken Lewis banned as public co. officer

万得福

http://finance.yahoo.com/news/fo ... c-co-223610561.html

Lewis led the bank when, in an extremely rapidly conceived and executed deal, Bank of America took over the investment bank as it was on the verge of collapse.

BofA paid some $50 billion in the deal, which further weakened it in the crisis and sent its shares plummeting when Merrill's losses were revealed months later.

"Despite concealing these forecasted losses from investors as immaterial, the bank then immediately sought massive financial assistance from the federal government, claiming that there had been a 'material adverse change' in Merrill's financial condition over the previous three months."

"Bank of America continued to conceal Merrill's forecasted losses until mid-January 2009, when disclosure of Merrill's multibillion dollar fourth quarter losses led to a $50 billion sell-off in the shares of Bank of America."

Eventually, the bank was forced to pay shareholders $2.4 billion to settle a class action lawsuit.

Lewis' lawyer Bruce Yannett on Wednesday defended the Merrill Lynch takeover and Lewis's actions.

"Mr. Lewis is proud of the role he played in helping the US banking system survive a very challenging period in its history," he said in a statement.

"Mr. Lewis consistently has made clear that the Bank relied on experienced legal counsel ... with regard to what needed to be disclosed to shareholders."

"The Merrill Lynch acquisition has since proven to be an unmitigated success for Bank of America and its stockholders."