SEC Files Second Lawsuit Against BofA

Last week, the SEC filed a new lawsuit charging Bank of America with failure to adequately disclose Merrill Lynch’s fourth-quarter losses in 2008. The AmLaw Daily reports that this new filing came after Judge Jed Rakoff denied the SEC’s request to tack on an additional disclosure violation to its original charge against BofA.  The original lawsuit charged BofA with failure to disclose $5.8 billion in executive bonuses at the end of 2008.

Although the possibility now exists of two separate trials against BofA regarding the alleged disclosure violations, the AmLaw Daily reports that many commentators believe the SEC will push for settlements in both cases.

Read the AmLaw Daily article