NEW YORK, Feb. 22 (UPI) -- A judge in New York begrudgingly accepted a $150 million settlement that clears Bank of America of some legal issues concerning its purchase of Merrill Lynch.
Federal Judge Jed Rakoff turned down a previous $33 million Securities and Exchange Commission settlement with the bank, telling the SEC the fine was too small, punished shareholders and did not name those responsible for keeping critical information from shareholders before they approved of the Merrill Lynch purchase in December 2008.
The SEC came back with a $150 million settlement, which Rakoff ruled Monday was "paltry" in the face of a deal worth billions of dollars, The New York Times reported Monday.
Rakoff called the settlement "half-backed justice at best," but said it met his minimum standards.
The bank still faces a New York State inquiry on the same issues: Failing to tell shareholders of massive losses at Merrill Lynch or of plans to pay huge bonuses to Merrill Lynch employees despite the losses.
Those losses led to a $20 billion federal bailout of Bank of America, which was announced soon after the Merrill Lynch deal closed in early January 2009.
