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.