A Washington Post news report said the Securities and Exchange Commission (SEC) vowed to pursue a wider probe against BofA as the agency began preparations for trial in its existing case involving BofA.
In August, the SEC accused BofA of concealing from investors the plans to pay billions of dollars in bonuses to Merrill employees. The SEC and BofA reached a $33 million out-of-court settlement, which was later rejected by U.S. District Judge Jed Rakoff (see It’s a No-Go for BofA Settlement with SEC ).
“[W]e will vigorously pursue our charges against Bank of America and take steps to prove our case in court,” the SEC said in a statement, according to the Washington Post . “We will use the additional discovery available in the litigation to further pursue the facts and determine whether to seek the court’s permission to bring additional charges in this case.”
As required, the SEC and BofA filed a plan to try the case with the judge.
New York Attorney General Andrew M. Cuomo and congressional investigators also are probing the BofA-Merrill Lynch deal. Sources familiar with Cuomo’s investigation have said he is drawing up charges against top BofA executives.
As a result, the upcoming trial may require BofA to disclose what was said between lawyers and executives in the course of preparing for the Merrill Lynch acquisition, the Post said.
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