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Bank Of America Defends Its S.E.C. Settlement

Publication Date: 
August 25, 2009
The New York Times
Louise Story

Professor Joseph Grundfest submitted an affidavit regarding the settlement of SEC vs. Bank of America, about disclosure of Merrill Lynch bonuses. The New York Times first published this version as they reported the story:

Nearly a year after its deal to purchase Merrill Lynch, Bank of America is still on the defensive.

The bank, along with the Securities and Exchange Commission, on Monday defended a settlement over the bank’s failure to disclose details about Merrill’s bonuses ahead of a shareholder vote on the merger.

In its courts filing, Bank of America said it acted properly when it did not disclose details of the bonuses and said it believed its view would prevail in court if the matter were put to test.


Two legal experts wrote affidavits to accompany the bank’s filing, and both said the bank acted appropriately in its disclosure. One, Morton A. Pierce, the chairman of Dewey & LeBoeuf’s mergers and acquisitions group, was paid for his memo. The other, Joseph A. Grundfest of Stanford Law School, wrote his memo on a pro bono basis because he was concerned the S.E.C. would have a hard time settling future issues if Judge Rakoff did not approve its deal with Bank of America.