Ken Lewis, Bank Of America Charged With Fraud
February 5th, 2010 - 7:45 pm ICT by GDBy Gina Gomez
New York, Feb 5, (THAINDIAN NEWS) Bank of America’s former Chief Executive Officer Ken Lewis has found himself amidst a new legal battle as a lawsuit has been filed against him and his former company for the controversial takeover of the Merrill Lynch in the month of September, 2008.
New York Attorney General Andrew Cuomo revealed on Thursday that legal action would be taken against the bank and its senior executives for allegedly duping shareholders about the acquisition of Merrill Lynch. Along with Ken Lewis, the former Chief Financial Officer Joe Price has also been accused of being involved in the fraud.
The lawsuit that has been filed alleges that the bank management did not reveal the full details of the financial crisis that Merrill Lynch was going through in a bid to win the approval of the shareholders for the merger. It has been claimed that the bank subsequently influenced the federal government by claiming that they would be terminating the merger unless they receive the additional aid of $20 billion. Following the Merrill Lynch bailout, Bank of America was granted $45bn as government funds.
In a press conference that was held on Thursday, Andrew Cuomo further added that the Bank of America management had manipulated the government as well as the taxpayers at an immensely difficult time of financial strife.
Meanwhile, Bank of America has reacted to the ongoing controversy by saying that the charges are “regrettable” and “totally without merit”. A company spokesperson has emphasized that Ken Lewis and Joe Price as well as the other bank officials have acted in good faith throughout their association with the company.
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