ALBANY, N.Y., July 2 (UPI) -- New York State prosecutors said they were not done investigating Bank of America's potentially fraudulent behavior when it purchased Merrill Lynch & Co.
A spokeswoman for New York Attorney General Eric Schneiderman's office said the attorney general "remains committed to this case and is in the process of routine discovery," The Wall Street Journal reported Saturday.
The federal government urged Bank of America to step in and purchase Merrill Lynch in 2008 in the same period that financial giants Bear Stearns and Lehman Brothers went bankrupt.
Allegedly, Bank of America did not disclose what it knew about the depth of Merrill Lynch's problems, holding back on full disclosure until after shareholders voted to approve the acquisition.
Schneiderman has issued new subpoenas to the bank and to former Chief Executive Officer Kenneth Lewis and former Chief Financial Officer Joe Price.
Gov. Andrew Cuomo, Schneiderman's predecessor as attorney general, initiated the case that has already completed its course with the Securities and Exchange Commission, which accepted a settlement of $150 million, but did not include the bank admitting culpability.
Lewis, who resigned in 2009, once called the case "an ill-founded attempt to lay blame where it does not belong."
