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An interesting read. I like this comment from the writer. The damn Aussies always stirring things up.
(sorry outback)
Here is part of the letter from New York Attorney General Andrew Cuomo, sent to the chairman of the House of Representatives committee on financial services, Barney Frank.
The Heat is On.... as the song goes. But will it ever get played out??
An interesting read. I like this comment from the writer. The damn Aussies always stirring things up.
(sorry outback)
I was prompted to write this way by a remarkable letter that crossed my desk, which shows that many US bank executives were both self-seeking and dumb. The disease goes further into the US community.
Here is part of the letter from New York Attorney General Andrew Cuomo, sent to the chairman of the House of Representatives committee on financial services, Barney Frank.
Bearing in mind that Merrill moved up its bonus payments in advance of its announced $15 billion quarterly loss and $27 billion annual loss, we have determined that Merrill Lynch made the following bonus payments:
– The top four bonus recipients received a combined $121 million;
– The next four bonus recipients received a combined $62 million;
– The next six bonus recipients received a combined $66 million;
– 14 individuals received bonuses of $10 million or more and combined they received more than $250 million;
– 20 individuals received bonuses of $8 million or more;
– 53 individuals received bonuses of $5 million or more;
– 149 individuals received bonuses of $3 million or more;
– Overall, the top 149 bonus recipients received a combined $858 million;
– 696 individuals received bonuses of $1 million or more.
Again, these payments and their curious timing raise serious questions as to whether the Merrill Lynch and Bank of America boards of directors were derelict in their duties and violated their fiduciary obligations. We will also continue to examine whether senior officials at both companies violated their own fiduciary obligations to shareholders. If they did, this raises additional serious issues with regard to the inappropriate use of taxpayer funds.
In this context, I represent the taxpayers who demand accountability, transparency, and responsibility. Taxpayers are being crushed by the losses on Wall Street and now are paying billions in bailout funds. My investigation into whether these bonus payments violated New York's fraudulent conveyance statute and whether the lack of disclosures concerning these payments and other matters violated the Martin Act will continue. We will also continue to examine the circumstances surrounding any supposed guaranteed bonuses, their justifications, and Merrill's obligations pursuant to them, once Bank of America produces more information concerning such bonuses.
Andrew M. Cuomo
Attorney General of the State of New York
– The top four bonus recipients received a combined $121 million;
– The next four bonus recipients received a combined $62 million;
– The next six bonus recipients received a combined $66 million;
– 14 individuals received bonuses of $10 million or more and combined they received more than $250 million;
– 20 individuals received bonuses of $8 million or more;
– 53 individuals received bonuses of $5 million or more;
– 149 individuals received bonuses of $3 million or more;
– Overall, the top 149 bonus recipients received a combined $858 million;
– 696 individuals received bonuses of $1 million or more.
Again, these payments and their curious timing raise serious questions as to whether the Merrill Lynch and Bank of America boards of directors were derelict in their duties and violated their fiduciary obligations. We will also continue to examine whether senior officials at both companies violated their own fiduciary obligations to shareholders. If they did, this raises additional serious issues with regard to the inappropriate use of taxpayer funds.
In this context, I represent the taxpayers who demand accountability, transparency, and responsibility. Taxpayers are being crushed by the losses on Wall Street and now are paying billions in bailout funds. My investigation into whether these bonus payments violated New York's fraudulent conveyance statute and whether the lack of disclosures concerning these payments and other matters violated the Martin Act will continue. We will also continue to examine the circumstances surrounding any supposed guaranteed bonuses, their justifications, and Merrill's obligations pursuant to them, once Bank of America produces more information concerning such bonuses.
Andrew M. Cuomo
Attorney General of the State of New York
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