Cuomo: Paulson Kept SEC Out Of The Loop On B Of A

Cuomo: Paulson Kept SEC Out Of The Loop On B Of A
By Zachary Roth - April 23, 2009, 12:19PM

New York Attorney General Andrew Cuomo has just released documents from his investigation into Bank of America, its receipt of government money, and those billions in bonuses that went to Merrill Lynch executives.

Here's one quick nugget we found: It looks like then-Treasury Secretary Hank Paulson didn't keep the SEC -- whose role, of course, is to protect investors -- informed on the government's intense December 2008 discussions with B of A about Merrill's losses, and possible government assistance for B of A.


From a letter sent today by Cuomo to Congressional leaders:
Notably, during Bank of America's important communications with federal banking officials in late December 2008, the lone federal agency charged with protecting investor interests, the Securities and Exchange Commission, appears to have been kept in the dark. Indeed, Secretary Paulson informed this Office that he did not keep the SEC Chairman in the loop during the discussions and negotiations with Bank of America in December 2008.

http://tpmmuckraker.talkingpointsmemo.com/2009/04/cuomo_paulson_kept_sec_out_of_the_loop_on_b_of_a.php

PAULSON SHOULD BE INDICTED. WHOSE CARES ABOUT PROTECTING THE INVESTOR?

should be fired, he had a fiduciary responsibility to share holders to disclose any doubts or problems (costs) associated with the deal. he chose to withhold materially significant information from his shareholders at the request of Paulson and Bernake. had he proceeded with full disclosure of relevant facts this deal would have been rejected by shareholders. bank of America share holders have lost hundreds of millions in stock value because of this breach of fiduciary trust..