Hi there,

If you think Democracy Now!’s reporting is a critical line of defense against war, climate catastrophe and authoritarianism, please make your donation of $10 or more right now. Today, a generous donor will DOUBLE your donation, which means it’ll go 2x as far to support our independent journalism. Democracy Now! is funded by you, and that’s why we’re counting on your donation to keep us going strong. Please give today. Every dollar makes a difference—in fact, gets doubled! Thank you so much.
-Amy Goodman

Non-commercial news needs your support.

We rely on contributions from you, our viewers and listeners to do our work. If you visit us daily or weekly or even just once a month, now is a great time to make your monthly contribution.

Please do your part today.

Donate

Bank of America Hid Merrill Losses from Shareholders

HeadlineJun 06, 2012

Newly surfaced documents show top executives at Bank of America neglected to tell shareholders about major losses at Merrill Lynch before purchasing 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. Documents filed as part of a shareholder lawsuit in federal court show Bank of America executives knew about the losses before the purchase. The documents include testimony from Bank of America’s then-chief executive, Kenneth Lewis, who admitted he had received loss estimates that were not included in documents given to shareholders. Documents show that just days before the vote, both companies determined Merrill’s losses for the fourth quarter would be $14 billion before tax. The bank’s former treasurer reportedly warned another official at the time that failing to disclose the losses could be criminal.

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 democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Top