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Andrew Cuomo Has Had Enough With Bank Of America's Cowardice, Plans On Filing Charges

Tyler Durden's picture


The Attorney General, shockingly on the verge of "making charging decisions" with respect to Bank of America and its executives, sent an angry letter to Cleary Gottlieb, legal advisors for "TARP For Life" club member Bank Of America, demanding that Ken Lewis and other executives who may face some serious fines and or jailtime, stop hiding behind a client-attorney privilege which is preventing his office (and in a separate matter, that of Jed Rakoff) from making decisions on the matter of how much material information was hidden or misrepresented in the Merrill Acquisition, and present all the critically needed information.

Either way, now that Cuomo is on the verge of actually charging someone with criminal misdeeds, the only question remains who: will it be Bank Of America, with the likely fall guy being big man Lewis himself (and what more fitting end to the debacle than Ken going to jail, after being threatened by Paulson and Bernanke with eternal damnation, and deciding not to invoke the Mac clause), or, will it be Wachtell Lipton's main lawyer, Ed Herlihy, who, as we discussed previously, was instrumental in the arrangement of the ML-BAC transaction.

Bank Of America now has four business days in which to decide, based on its disclosures, who is going to be charged and with what crime. In the meantime, Rakoff must be also quite interested in this outcome. In that separate case, Bank Of America has until tomorrow, September 9, to come back to the judge with the additional information he has requested along the same lines. The next few days could end up being very interesting for Ken Lewis.





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Tue, 09/08/2009 - 16:41 | Link to Comment Anonymous
Tue, 09/08/2009 - 16:58 | Link to Comment chunkylover42
chunkylover42's picture

lol +1

Tue, 09/08/2009 - 18:44 | Link to Comment bonddude
bonddude's picture

300 LB. Wife sez "Slip into this thong hubby."

Tue, 09/08/2009 - 21:28 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

What was the name of that old song? Kenny and the bitch.

Tue, 09/08/2009 - 16:44 | Link to Comment Fruffing
Fruffing's picture

Coumo's gonna have a hell of a time getting a job on Wall Street.

Tue, 09/08/2009 - 16:44 | Link to Comment deadhead
deadhead's picture

To the NY AG staff and Mr. Cuomo:

Thank you for your courage and intellectual fortitude in investigating this matter. 



Tue, 09/08/2009 - 22:06 | Link to Comment deadhead
deadhead's picture

who junked me?  Mary?  Kenny?  I know you're retired now, Hank; was it you? (p.s. hank, do you REALLY do mescaline?).

I know it wasn't sweet sally from citi cuz she wants kenny's chair real bad.

Tue, 09/08/2009 - 16:45 | Link to Comment taraxias
taraxias's picture

I hope Cuomo is not visiting $5,000/hr hookers across state lines.

Tue, 09/08/2009 - 16:48 | Link to Comment Miles Kendig
Miles Kendig's picture

His cookies come prepackaged

Tue, 09/08/2009 - 18:46 | Link to Comment bonddude
bonddude's picture

He's clean...doesn't want to be excommunicated.

Tue, 09/08/2009 - 16:46 | Link to Comment Anonymous
Tue, 09/08/2009 - 16:46 | Link to Comment phaesed
phaesed's picture

God let these f'n banks go down.... I am so sick of this ponzi scheme today.

Tue, 09/08/2009 - 16:50 | Link to Comment economessed
economessed's picture

Perhaps they'd go down if we gave them a little push......

How much straw can a camel's back support anyway?

Tue, 09/08/2009 - 16:49 | Link to Comment Anonymous
Tue, 09/08/2009 - 16:49 | Link to Comment JohnKing
JohnKing's picture

A shame really, I'm no fan of Ken Lewis but this smells like Goldman. Hanky Panky and Kamikaze Ben are every bit as involved as KL. I always thought the game plan was to push KL out and put Goldman boy Thain in, maybe that is still the play.

Tue, 09/08/2009 - 16:54 | Link to Comment mule65
mule65's picture

"Hanky Panky"  -- LOL

Tue, 09/08/2009 - 18:53 | Link to Comment bonddude
bonddude's picture

Good prosecutors squeeze to climb the ladder of culpability. I've got to believe this more about his political aspirations than fronting for GS. I'm sure he believes his family is far more worthy to represent the Dems than the scuzzy Ark. & Chicago crowds.

So let's hope he keeps climbing the ladder and owns kevlar underwear. We could do worse than Coumo. And have.

Wed, 09/09/2009 - 11:51 | Link to Comment Hephasteus
Hephasteus's picture

The corruption glass ceiling is sitting about gutter level these days.

Tue, 09/08/2009 - 16:50 | Link to Comment waterdog
waterdog's picture

The judge has told the AG that the vice is in place and to bring him a body.

If Ken does not scream loud enough, then the lawyer will go next. But, a lawyer doing-in a lawyer, in that city? Not much of a chance.

I put my money on Mr. Lewis singing about the rest of the conversation that Bernanke does not recall.

Tue, 09/08/2009 - 16:54 | Link to Comment taraxias
taraxias's picture

He had a chance to sing and he didn't. Too late now.

Tue, 09/08/2009 - 16:56 | Link to Comment JohnKing
JohnKing's picture

That works for me but KL might have already played that card the wrong way when he got cutesy with semantics in front of Congress... "I didn't perceive a threat". I'm sure that was music to Bennies ears.

Tue, 09/08/2009 - 17:04 | Link to Comment Anonymous
Tue, 09/08/2009 - 17:29 | Link to Comment deadhead
deadhead's picture


Your paragraph IS profund.  Well said.  Your thoughts are shared by many.

Wed, 09/09/2009 - 01:16 | Link to Comment percolator
percolator's picture

well said anon 62761

Tue, 09/08/2009 - 17:07 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

'"TARP For Life" club member Bank Of America'

That's priceless. I needed a good laugh.

Tue, 09/08/2009 - 17:09 | Link to Comment Anonymous
Tue, 09/08/2009 - 18:56 | Link to Comment bonddude
bonddude's picture

eeehhh hummm! Thanks for the warning.

Tue, 09/08/2009 - 20:43 | Link to Comment PenGun
PenGun's picture

 Yours is badly fomatted. The parent is fine. A pox on KDE and Gnome.

Tue, 09/08/2009 - 17:11 | Link to Comment Anonymous
Tue, 09/08/2009 - 17:41 | Link to Comment Anonymous
Tue, 09/08/2009 - 18:08 | Link to Comment panda6
panda6's picture

Cuomo is just trying to make a name for himself by stoking populist anger so he can move onto bigger and better things.

Tue, 09/08/2009 - 18:18 | Link to Comment deadhead
deadhead's picture

.... "stoking populist anger" is one way to look at it.

another way is "doing his job enforcing existing laws and responding to public anger that is derived from people's outrage that possible crimes have been committed by a small group of financial institutions that have effectively seized control of the USA"

think Thomas Dewey in terms of lineage of NY prosecutors..... 

Tue, 09/08/2009 - 18:58 | Link to Comment bonddude
bonddude's picture

Rudy, Spitzer ... it's a natural. But I do like Cuomo anyway. He's smart.

Tue, 09/08/2009 - 18:23 | Link to Comment Veteran
Veteran's picture

let's hope he moves on to bigger and better things.  America needs people who do not fear sticking it so righteously to The Man.  I hope when he's done with BofA he goes after JPM, then GS, then. . . insert-your-bank-here 

Tue, 09/08/2009 - 18:37 | Link to Comment deadhead
deadhead's picture

chances are very good that he will be the next Governor in NY.

Tue, 09/08/2009 - 18:59 | Link to Comment bonddude
bonddude's picture

10:1 the sitting idiot is gone.

Tue, 09/08/2009 - 18:53 | Link to Comment Anonymous
Tue, 09/08/2009 - 19:10 | Link to Comment Bubby BankenStein
Bubby BankenStein's picture

Very good news.  I hope this is just the first dribble out of a long pipeline.  The sewage must be processed.

Tue, 09/08/2009 - 19:21 | Link to Comment Anonymous
Tue, 09/08/2009 - 22:37 | Link to Comment Ducky
Ducky's picture

I'm with you on this. That is the real issue here. BofA mostly avoided the whole subprime mess. They came in and tried to bottom fish by buying Countrywide before bankruptcy. Buffet was bottom fishing too. The supposedly smart guys bought too early.

The real criminals are the guys that ran Bear, Lehman and the GSE's.

Tue, 09/08/2009 - 19:22 | Link to Comment Anonymous
Tue, 09/08/2009 - 20:22 | Link to Comment MyKillK
MyKillK's picture

Can anyone explain to me why Ken Lewis is the one on the hot seat here? I thought it was Paulson because he is the one that basically forced the shotgun wedding, and withheld important information regarding the state of ML's assets?

Looks like Ken Lewis is being set up as a classic fall guy and the GS crew gets away clean, as usual.

Tue, 09/08/2009 - 20:52 | Link to Comment deadhead
deadhead's picture

in a nutshell, Lewis did not invoke the mac clause and it is pretty clear that he should have regarding the ml bonus matter as well as the ml losses that came to light during their due diligence. prima facie, big time sec legal violations.

i'm really not sure if paulson broke any laws with his behavior, though something must be wrong if a US treasury sec'y can tell a ceo that he and his board will be replaced if they don't do a deal that is desired by the treasury sec'y. i would like to hear other opinions as to which laws may have been violated by Paulson.

My view at the time of the fiasco which holds true now is that Lewis knew he had a materially adverse change and should inform shareholders. on the other hand, paulson and bernanke are beating him up with the a) previously noted employment threat and b) the whole "the system will crash and freeze up" and that if Lewis doesn't go along with it, the world will end.  I strongly suspect there was some flag waving "ken, don't let america go down" and I suspect some private "don't worry, we'll cover your ass on this one" delivered to lewis from paulson, bernanke.  on that note, i think the sec 33 million settlement was one of the payoffs but they got a little problem now thanks to Judge Rakoff and now NY AG Cuomo.

frankly, lewis was in a tough position and I suspect at least some of his motivation was to "save the system" me naive, but i believe it to be the case. 

bottom line is that a ceo should follow the law and i am of the opinion that lewis blew it in that regard. i also think paulson did threaten lewis and certainly paulson knew about lewis' mac problem but conveniently stayed away from it, at least publicly.

due to Judge Rakoff and now Cuomo, we are likely to get some more details.  this could get very interesting.



Tue, 09/08/2009 - 22:15 | Link to Comment Cistercian
Cistercian's picture

 Excellent.At last some sort of what I hope will be a profoundly long list of miscreants being carted off to jail!Thank you Mr. Cuomo!

 It is worth reiterating it is just a beginning.So many more left to incarcerate....

Tue, 09/08/2009 - 22:19 | Link to Comment Anonymous
Wed, 09/09/2009 - 00:32 | Link to Comment Art Vandelay
Art Vandelay's picture

Uh, those are rhetorical questions, right?

Tue, 09/08/2009 - 22:43 | Link to Comment Stuart
Stuart's picture

Madoff, Lewis as well as Sr. SEC staff for their complicity in the fraud.

Tue, 09/08/2009 - 22:43 | Link to Comment TheDreadPirateR...
TheDreadPirateRoberts's picture

I predict Cuomo will soon fall victim to some scandal just like Spitzer. Not that Spitzer was such a great guy. But do you think some mere state governor wannabe will be allowed to get in the way of the largest depository institution in the world in any way that matters?

he'll be bought off or run over.

and all these people who think that lewis or thain had a real choice in the matter, wake and smell the coffee. this deal was about survival. go lynch Bernanke, Paulson and Geithner for your losses.


Wed, 09/09/2009 - 05:41 | Link to Comment Anonymous
Tue, 09/08/2009 - 22:50 | Link to Comment Stuart
Stuart's picture

It's an exquisite sense of satisfaction when you pursue someone, methodically, deliberately, who has done harm to you or others and you get them by the balls, squeezing, with no way out. At that moment when they finally realize it too. Checkmate..... POP...POP.   

Tue, 09/08/2009 - 23:29 | Link to Comment Anonymous
Tue, 09/08/2009 - 23:45 | Link to Comment OSR
OSR's picture

I hope to hell that Cuomo has the good sense to stay off of airplanes and hookers. Otherwise, I foresee much crashing and burning.

Tue, 09/08/2009 - 23:50 | Link to Comment rapier
rapier's picture

Somebody should write a book about this if charges are filed. Describing 3 to 10 years of litigation will provide a really exciting read. To help you out I'll give you the last chapter.


Ruling overturned on technical issues. NY State AG Whoever declines to refile charges.

Wed, 09/09/2009 - 00:10 | Link to Comment Anonymous
Wed, 09/09/2009 - 03:09 | Link to Comment Anonymous
Wed, 09/09/2009 - 05:47 | Link to Comment grasshopper
grasshopper's picture

B of A is the burger king of banks, Wells Fargo is the Pizza Hut of banks. I defaulted on both of them @ 28% interest, when they wouldn't give me a break. gave their callers custom ringtones (i.e. MUTE), and opened a checking acct at my local CU.

They won't cut you a deal until you default on them for a few months.



-Poor guy de-lurking

Wed, 09/09/2009 - 07:09 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Welcome. Glad you decided on the red pill.

"After this, there is no turning back. You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes."

Wed, 09/09/2009 - 08:00 | Link to Comment grasshopper
grasshopper's picture

thanks NZ, i guess i'm a "ruthless" (or 'rational') defaulter.–-table

I t wasn't so long ago that i was getting  5 + credit card offers a day in the mail. i'm a starving artist w/ no assets and i live on 1g a month ... subprime x 10. seems i could have 'owned' a home if i'd wanted to. so absurd!

i borrowed money via credit offered for emergencies etc, just like a lot of losers, but i never thought of houses / cars - or any luxury; mostly food / rent. sometimes i wonder if the "hardship program" payments I'm making are even worth it.

I borrowed the money, and feel compelled to pay it back fair and square, but then, i feel guilty for giving my hardearned to bandits.  

Wed, 09/09/2009 - 07:06 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

A good start that will not be finished until Paulson, a Goldman mole who saved the the sorry ass of his beloved GS with truckloads of taxpayer cash, does the handcuffed hand over face perp walk.  Leg chains too please.  Can't trust that guy. 

Where's our $13 billion of TARP money GS got from AIG, who got it from us, courtesy of you, Hank? That is stolen money, folks, pure and simple. Don't worry, I hear the prison wages are up to $.50 an hour and you'll have this paid off in no time.

Wed, 09/09/2009 - 08:59 | Link to Comment Anonymous
Wed, 09/09/2009 - 11:49 | Link to Comment Anonymous
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