So we are a nation of laws after all. It was starting to look like business could do anything they want, instead of the usual almost everything they want. Cuomo certainly knows how to get fast results, even when the initial reaction is stonewalling.
Cuomo's office alleged that Thain didn't answer the questions under instructions from Bank of America, and as a result, the bank is interfering with its investigation of the bonus payments.Grab some popcorn and watch BoA CEO Ken Lewis and John Thain play the blame game. It's the "I didn't do it" fight of the century.
Cuomo has been investigating $3.6 billion in bonuses Merrill Lynch executives received less than a month before the company completed its sale to Charlotte, N.C.-based Bank of America, and whether investors were properly informed about Merrill's finances.
The payments came as New York-based Merrill was on the brink of reporting a more than $15 billion fourth-quarter loss. The investment bank was among the hardest hit by the ongoing credit crisis.
The bonuses stirred controversy because Merrill's bigger than expected loss prompted Bank of America to seek more government bailout money to complete the acquisition. The government agreed to give Bank of America an additional $20 billion in January to absorb Merrill.
