Cuomo Charges Against BofA Executives Coming

Tyler Durden's picture

Zero Hedge suggests readers send Ken (and probably Hank) some "Sleep Well At Night" cards. Then again, one hopes to see not just civil, but criminal charges being pursued against the perpetrators of this fraud.

From the AP, just released:

NEW YORK (AP) -- The New York Attorney General's office is preparing
charges against several high-ranking Bank of America executives over
the bank's alleged failure to disclose details about its acquisition of
Merrill Lynch, according to a person familiar with the investigation.

General Andrew Cuomo's office is likely to file civil charges against
the executives over their role in failing to alert shareholders to
mounting losses as well as accelerated bonus payments at Merrill, said
the person, who requested anonymity because no charges have been filed

Separately, a federal judge on Monday rejected a $33 million
settlement BofA reached with the Securities and Exchange Commission
over disclosures tied to bonus payments at Merrill.

BofA agreed to acquire Merrill in a hurried deal a year ago at the height of the credit crisis.

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jm's picture

And yet the stock is down a earth-shattering three cents (3:30).  Investors happy to see crooks go to jail?  Crooks propping up the zombie?

Anonymous's picture

Sep 14, 2009 at 11:23 am

Class is in session and Dr. Nassim Taleb teaches a “birds spinning over the head” Congress a few lessons in economics.

Anonymous's picture

Thanks for the link, this is excellent.

Careless Whisper's picture

The stock will probably rally when Ken Lay, errr, Ken Lewis is gone.


jm's picture

Talk about reading the tea leaves! ;)

John Self's picture

By drawing that comparison, you speak ill of the dead.

NoBull1994's picture

The PPT in action!  Watched the old Wall St. Week from Oct 16, 1987 for good entertainment....

waterdog's picture

I think it is 30 minutes past the time to get out of Dodge. So the Federal court is going to shoot the horse and stable-hand, and, the state court is going to shoot the rider(s).

Which came first, the horse or the rider?

Why did the chicken cross the road? To get the heck out of the way.

Project Mayhem's picture

I want to see criminal charges.  I will be satisfied with nothing less.

Cindy_Dies_In_The_End's picture

they did some game theory and realized they had to hang somebody.


If they charge him, so what?

Anonymous's picture

He may have dirt on others and will roll?

Cheeky Bastard's picture

game theory -  the most overrated, dogmatic, non-productive, blindly followed piece of applied mathematics. The only historical " scientific " blunder which ranks in the same category as game theory was geo-centrism. If you want to point your finger toward something and yell " Fuck you " very very loud, look no further than John Nash and the brilliant economists over at Princeton which implemented his into the " everyday " life. As for Cuomo; good luck man and stay away from whores; blow, on the other hand, is still a go !

TumblingDice's picture

The assumption of rationality of all the players involved is indeed a foolhardy one.

The first game we played in my game theory class (about 30 people) went as follows:

Pick a number that is going to come closest to 70% of the mean for the class.

The average number of the class was 35, which is exactly 70% of the natural mean, 50. So whoever picked closest to 24.5 won. The the teacher explained to us how irrational we all were by not picking 1 since we could only account for one iteration of logic collectively. (If we knew that the natural mean was 50 and that someone had to pick 35 then we should have picked 25, but then knowing that this information was available to everyone and everyone was going to pick 25 we should have picked 70% of than...repeat until 1).

I protested since it was clearly stupid to suggest that it was rational to assume that everyone else was rational. Assume makes an ass out of you and me I concluded. I didn't get a good grade in that class since somehow there developed a disparity between my test scores and my participation" scores. Oh well. I think the social simulation software that all the CIA's and MI6's develop are based on game theory while trying to work irrationality into the equation. Needless to say that this is headed to a huge fail.

straightershooter's picture

This is the plot to get Bernanke & Associates. All those BOA executives will be enrolled into witness protection program to create the mayhem program to get the big, er. really big, fish. Soon Cue Mo will be called upon to run for President.

Crab Cake's picture

Someone had better start putting these crooks away, and soon.  If they do not...  The government may be confused with the criminals.  If that happens the people will have to go to all that work of hoisting bankers from light posts. 

JR's picture

According to the New York Times  Septemper 1:  Several banks, including JPMorgan, Goldman Sachs and Morgan Stanley,  have already repaid aid they received under the Troubled Asset Relief Program, or TARP. Doing so removed those firms from having their executive compensation packages approved by Kenneth Feinberg, the Obama administration’s pay czar. Bankers worried that the pay rules put them at a competitive disadvantage in retaining talented employees.

Bank of America is awaiting Mr. Feinberg’s approval of its 2009 executive pay packages.

Bank of America isn’t looking to pay back all of the $45 billion it received in TARP aid at once, according to the paper, but may give back the $20 billion it received in January to help it absorb teetering investment bank Merrill Lynch.

In the rush to identify culprits in this most disgusting and corrupt  financial scenario in American history,  why does everyone seem to concentrate on BofA and forget the corruptive influence and tyrannical management of this event by officials of Goldman Sachs working in harmony with the Secretary of the Treasury, a Goldman Sachs alum, and the Fed chairman, a Goldman Sachs’ captive?

As I recall, Bank of America needed more capitalization mainly to payoff Merrill’s debts. And it was Paulson and Bernanke who took the risk of sinking Bank of America, if need be, so Merrill’s creditors could get paid.

IMO, the most spectacular of this “follow the money” event is the money trail that leads to why, really, Paulson and Bernanke forced Bank of America to drink Merrill poison, forcing it down the throat of this giant retail bank with taxpayer bucks. 

Who got the taxpayer dollars that moved through BofA to help Merrill pay its gambling debts? The BofA caper is just another episode in “The Public and the Truth Be Damned.”  It’s a scene that’s been played before with much the same cast with the script written by the Fed banking cartel and the MSM.

Merrill, according to Bloomberg in September 2008, was the biggest underwriter of CDOs in 2004 with $15.9 billion and the second-biggest underwriter in 2005 with $27 billion when AIG was the most active in writing credit default swaps, according to Asset- Backed Alert, a trade magazine.

As much as $37 billion from federal bailout loans to American International Group Inc. went to investment banks including Merrill and Goldman Sachs Group Inc. “Without the government money,” said Bloomberg, “Goldman, Merrill Lynch & Co., Morgan Stanley, Deutsche BankAG and other firms could have become some of the biggest creditors in a bankruptcy filing by AIG, the world's largest insurer, because of its billions in losses on subprime bonds and corporate debt."

Put Ken Lewis in jail.  Let Goldman and the Fed roam free. That ought to solve all our financial problems.

Cindy_Dies_In_The_End's picture

Well, the economatrix has to hand somebody over to the peasants...American Idol is a long way off, after all.


Ken should have seen the noose when he was first put in that position to begin with, dope.



buzzsaw99's picture

Three people out of three thousand who should be going to jail. When I see Paulson, Greedscam, Raines, Barney Frank, Chris Dodd, Mozilo, Dick Fuld, Chuck Prince, et al hauled off in chains I'll believe anyone gives a flying f$ck.

poydras's picture

We can hope that these latest events lead to further exposure.

KeyserSöze's picture

This should be added fuel to open up the FED's books Tyler.

Ned Zeppelin's picture

JR: Start somewhere, and putting Ken Lewis and BAC bank execs under threat of prison time and sweet beddie bye times with cell mate and future "husband" Bubba will serve to jog their woefully deficient recollections as to who threatened who and for what reason,  and finally we'll get to see a real prosecutor have a chat under oath with ole Hank, the Hammer. Perhaps the Hammer come down on you, Hank old boy. Broke my hear to read Vanity Fair about Hank's sleepless nights worrying how to save Goldmans ass trying to the right thing for his country. Really, the guy's a treasonous worm patriot.

Waiting on the perp walk and refund of the AIG bailout money paid to Goldman et al. Systemic risk, my ass.

Just my opinion, of course.


deadhead's picture

"Ken Lewis and BAC bank execs under threat of prison time and sweet beddie bye times with cell mate and future "husband" Bubba"

this would make them "matrimonial inmates" kinda, eh?

JR's picture

I can live with that.  Thanks.

Anonymous's picture

Nothing less than jail time will do.

Steal billions from taxpayers? Endanger the nation more than any terrorist could possibly do?

Of *course* you go to jail. To even discuss it shows how broken the system is. Ten years, no parole. Nothing less.

putbuyer's picture

Many shed a tear seeing Susan Boyle's amazing performance, she being the little train that could, and did. Cuomo may very well win political points from the people, but his rage against the machine will produce no fruit, and the magic dust in the wind will settle - leaving Ken and company with a bigger settlement to pay, but a win nonetheless.

Anonymous's picture

Anyone know where Hank Paulson's father is buried? I need to go piss on his grave and yell at him for not using a condom.

Anonymous's picture

I fear for Cuomo. If he has too much success bringing the big boys down, won't he meet the same fate as the prosecutors of the Mafia met, over in Sicily, in the 90s?

deadhead's picture

Giuliani did ok after prosecuting the mob in NY.  Same goes for Dewey in NY.

Spitzer did ok and as far as I'm concerned, it was his own stupidity that got him caught.

whopper's picture

My cynicism prevents me from becoming encouraged. The crooks run the government, that is a tough nut to crack.