Thaindian News

By Ranjan Bhaduri
Aug 28, (THAINDIAN NEWS) In a recent development that has made sensation in the banking sector of the USA the ex CEO of Bank Of America Kenneth Lewis, and ex CFO Joe Price have vehemently denied the lawsuit allegation filed against them. The bank which is among the largest financial players in the USA, acquired Merrill Lynch two years back when US economy was going through one of its toughest times. The EX CFO and Ex CEO of Bank of America both have filed petition in the apex court against the lawsuit filed by Andrew Cuomo, the State Attorney General. The bank which has been known for its aggressive acquisition trend, made headlines when it acquired Merrill Lynch amidst tough economic times.

The lawsuit filed by the State Attorney General says that Bank of America did not give right information to its shareholders to acquire the brokerage farm. The lawsuit also slams the bank for riding the recession wave on the top of taxpayer paid bailout money. The attorney general has accused that the bank misled its investors regarding the poor financial health of Merrill Lynch at that time. The latter was incurring huge losses at that time the lawsuit claims.

The lawsuit targets both Joe Price and Kenneth Lewis and says that the duo were the mastermind behind the buyout ploy. By the end of 2008 the acquisition was over. The bank of America investors got to learn about the staggering fourth quarter losses of Merrill Lynch only in January 2009. Kenneth Lewis and Joe Price are ready with their defenses against the accusation. Bank Of America has also submitted its counter argument.