BofA to Pay $2.43 Billion in Merrill Settlement |
| Wall Street Journal - Sep 28, 2012 |
Bank of America Corp. BAC -1.00%agreed to pay $2.43 billion to settle claims it misled investors in its 2009 acquisition of Merrill Lynch & Co., in the largest settlement of a financial crisis-related shareholder class-action suit.
The agreement represents the latest effort by Brian Moynihan, chief executive of the nation's second-largest bank by assets, to deal with the consequences of a pair of acquisitions the bank hastily made during the financial crisis: the 2008 acquisition of mortgage lender Countrywide Financial Corp. for $2.5 billion and the $19 billion Merrill Lynch purchase.
The pact shows that four years after the financial crisis, Bank of America continues to pay a hefty price for those deals, engineered by former Chief Executive Kenneth D. Lewis, who left the bank in 2009. Bank of America last year agreed to pay $8.5 billion to settle claims brought by investors who took a beating on mortgage bonds issued by Countrywide before the housing market collapsed.
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- Posted: 2012-09-28 13:59:56
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