Bank of America Reaches $2.43B Settlement in Merrill Case

The financial giant Bank of America has announced a $2.43 billion settlement in connection with its misleading of investors while acquiring Merrill Lynch. Bank of America executives allegedly concealed heavy losses at Merrill when it purchased the company for $50 billion in 2008. While shareholders relied on optimistic projections from the bank that the deal would earn money, the losses actually resulted in a $20 billion taxpayer bailout. The settlement is the largest in a securities class action case to result from the U.S. financial crisis. It stands likely to undermine a case brought by the New York attorney general’s office against Bank of America as prosecutors can’t recover losses for shareholders once they settle.

See all headlines for this show

Recent Shows More

Full News Hour


    Juan González on How Puerto Rico’s Economic "Death Spiral" is Tied to Legacy of Colonialism
    Could Puerto Rico become America’s Greece? That’s a question many are asking as the island faces a devastating financial crisis and a rapidly crumbling healthcare system. Puerto Rico owes $72 billion in debt. $355 million in debt payments are due December 1, but it increasingly looks like the U.S. territory may default on at least some of the debt. Congress has so far failed to act on an Obama administration proposal that includes extending bankruptcy protection to Puerto Rico and allocating more equitable Medicaid and Medicare...


    There are no headlines for this date.

Creative Commons License The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.