February 5, 2010 |
Former Bank of America Chief Executive Ken Lewis now holds the inglorious distinction of being the first top figure from a major bank to be sued by the government over the financial industry's debacle of the last 18 months. The New York attorney general's office Thursday accused Lewis, the bank and another former top official of fraud in connection with Bank of America Corp.'s acquisition of investment bank Merrill Lynch & Co. at the height of the financial crisis. Bank of America and its top executives misled the government and its shareholders about the size of Merrill Lynch's losses, according to the civil lawsuit filed in New York state court.
March 3, 2004 |
The chief executive of Bank of America has dropped his employment contract because he wanted his pay to be based on performance, the bank said in a regulatory filing. The company's board agreed to terminate the contract at the request of Ken Lewis, who is also chairman, spokeswoman Eloise Hale said. The board's compensation committee will determine Lewis' pay based on customer, employee and shareholder satisfaction, she said. In 2002, Lewis made a base salary of $1.5 million and a bonus of $5.
March 26, 2014 |
Putting to rest one of its biggest remaining headaches, Bank of America Corp. has agreed to pay $9.5 billion to settle claims by Fannie Mae and Freddie Mac. The government-sponsored mortgage finance giants had demanded compensation from the Charlotte, N.C., bank for losses on securities backed by faulty loans issued during the housing boom. The bank said the settlement, announced Wednesday, resolves all claims against BofA by the Federal Housing Finance Agency, the agency that regulates Fannie and Freddie.
May 2, 2012 |
Bank of America Corp., which has been working to downsize its consumer operations by 30,000 employees, now is targeting highly compensated investment bankers and non-U.S. wealth managers - efforts expected to reduce the job rolls at the bank by 2,000 people. The cuts, first reported in the Wall Street Journal on Tuesday, also will cost some commercial bankers their jobs at BofA, the second-largest U.S. bank as measured by assets. The actions include the planned sale of a division handling wealth management in Europe, Latin America and Asia, according to a person briefed on the plans who was not authorized to speak publicly about the matter and requested anonymity.
April 16, 2014 |
Socked by mortgage-related legal expenses, Bank of America Corp. lost $276 million during the first quarter, sending its stock down sharply. The quarterly loss, its first in 2½ years, came despite lower loan losses and better than expected results in fixed-income trading, a slowing business that hurt rival JPMorgan Chase & Co. during the quarter. The results included $6 billion in litigation expense, much of it related to toxic bonds backed by housing-boom mortgages from Countrywide Financial Corp., the aggressive Calabasas lender that nearly collapsed before being acquired by Bank of America in 2008.
September 29, 2012 |
Clearing one major thorn from its thicket of legal problems, Bank of America Corp. agreed to spend $2.4 billion to settle an investor lawsuit accusing it of understating the financial decay at Merrill Lynch & Co. when it acquired the giant investment house during the financial crisis. "Our primary focus is on the future," Chief Executive Brian Moynihan said in a statement Friday, admitting no wrongdoing and explaining that the giant Charlotte, N.C., bank just wanted to end the costs and uncertainties of the class-action suit.