Viewing the settlement as too lenient, Federal District Judge Jed S. Rakoff did not approve the $33 million deal between the SEC and Bank of America.
From Douglas A. McIntyre, Newsweek:
Federal District Judge Jed S. Rakoff was supposed to a approve a $33 million settlement between the Securities and Exchange Commission and Bank of America over the issue of the financial firm making inaccurate statements regarding Merrill Lynch employee compensation. These statements were made in the B of A proxy that was sent to shareholders to approve the Merrill buyout.
It turns out that the judge believes that the SEC let the bank off too easily, and that the seriousness of B of A’s actions warrants more than a $33 million slap on the wrist.
