N.Y. AG: Merrill Lynch Wasted Funds

Investment Bank Secretly Awarded $3.6B In Bonuses Using Taxpayer Bailout Money, Andrew Cuomo Charges

(AP)  New York Attorney General Andrew Cuomo accused Merrill Lynch & Co. executives of corporate irresponsibility by secretly and prematurely awarding $3.6 billion in bonuses as taxpayers were bailing out the industry.

Cuomo made the claims in a letter sent Wednesday to U.S. House Financial Services Chairman Barney Frank.

"In a surprising fit of corporate irresponsibility, it appears that, instead of disclosing their bonus plans in a transparent way as requested by my office, Merrill Lynch secretly moved up the planned date to allocate bonuses and then richly rewarded their failed executives," Cuomo stated.

"Merrill Lynch had never before awarded bonuses at such an early date, and this timetable allowed Merrill to dole out huge bonuses ahead of their awful fourth quarter earnings announcement and before the planned takeover of Merrill by Bank of America," Cuomo said in the letter.

Cuomo said Bank of America, whose deal to acquire Merrill closed at the end of the fourth quarter, was apparently complicit in the move to award bonuses before Merrill's fourth quarter earnings were announced. The Democrat surmised that Bank of America must have been aware that Merrill Lynch's fourth quarter and yearly earnings were "disastrous."

Bank of America spokesman Scott Silvestri didn't immediately comment. Last month, as reports of the Merrill bonuses first circulated, Bank of America noted that the bonus payments were made when Merrill was still an independent company.

Cuomo said four executives alone received bonuses totaling $121 million.

[jetranger7]

What Amazes me, is just how many people still have any accounts with Bank of America, WHY ?? I would Not have 1-cent in that Bank, or let them hold any leins in my name what so ever, The more people who BOYCOTT that bank, the harder it will be on them, and lets hope they fall hard !!! They deserve to be put out of Business, and the Government should NOT give them 1 more cent ever for any reason- enough is enough !!!!!

[noloyalisti]

We need to take back the money from the bankers, oil companies, insurance companies, etc. They don''t deserve even their salaries, let along the bonuses. What sinful slime they are. Runaway unregulated capitalism is DEAD, DEAD, DEAD.

[ecibu46]

It is evident that the the two parties are now ide-bankrupt. It hardly matter swhether the CEO was democrat or republic. We really need a new party with fundamentally new ideas. The dominant two-party system is clearly irrelevant now.

[garyl615]

HANG ''EM.

[endrepubs]

So 700 Merrill Lynch Executives received more than One million dollars each? That''s whats called the 700 Club. I always knew Pat Robertson was tied in with this rip off somehow.

[noloyalisti]

What a surprise! A rich, spoiled, right wing corporation stealing and wasting money. Time to take back the money from these crooks and rebate to the people.

[joeovercoat]

It is good to see someone taking action to hold these corporate thieves to account - it is too much to hope that they will do time for their malfeasance, but at least they''ll be squirming in their leather chairs!

[lochlan-2009]

And we don''t even get a picture of these CEO''s. Don''t want people to know who they are, the most immoral people in existance might not be able to show their faces anywhere, (other than the parties they attend where money is God, and they''re just another sleeze ball in the crowd).

[grandesign]

This selected group of white male executives is tearing this country apart. Later they will claim that illegal immigrants are responsible for the ills of this country, when in reality they are the ones destroying the United States and robbing millions of hard working American taxpayers.
Posted by Ceres5 at 12:30 PM : Feb 11, 2009

You hear this all the time, that illegal immigrants are responsible for getting us in this financial mess. It is a red herring, aimed at taking the focus off the real culprits.

[grandesign]

"In a surprising fit of corporate irresponsibility, it appears that, instead of disclosing their bonus plans in a transparent way as requested by my office, Merrill Lynch secretly moved up the planned date to allocate bonuses and then richly rewarded their failed executives."

What''s $6.3 billion between friends? The taxpayers will pay for it--suckers.

[hulsera]

It''s simple make them return the money and what ever they bought with it. And give them a pink slip''s all of them involved!! or even better have all there names listed stating I missused the money the tax payers gave me.

[middleman8]

This could never happen any place in the world except the United States.
The working taxpayer in the states is nothing but a gullible sucker.

[ceres5]

What Mr. Obama is going to do about it?

[schoolmarm22]

First- there should have been safeguards against this type of thing when the bail-out money was being handed out. Second- these crooks knew exactly what they were doing when they moved the bonus timetable forward. This speaks very clearly that this was the plan all along. There are no 4 men on the planet worth a total of $121 million in bonuses!Thieves!! They should be prosecuted for theft, fraud, and any other charges that can be brought; let an example be made of them.

[niceface19]

Obama said it''s not a waste of money, it''s bonuses for CEO''s and for those who want it, be patient??????

[mainedoggie]

Nobody is really surprised by all this right? It was 100% predictable...

Are you paying your taxes people?

[gowerd]

Stupid or what????

How dumb could the gov''t be to let this happen? Make each of the people who received the bonuses pay it back now ....with interest!!! Then charge the company with misuse of funds and let the company go bankrupt if need be, these people obviously don''t care about the company just their fat bonuses for running the company into the ground!!!!

[ceres5]

This selected group of white male executives is tearing this country apart. Later they will claim that illegal immigrants are responsible for the ills of this country, when in reality they are the ones destroying the United States and robbing millions of hard working American taxpayers.

[ahumbleopini]

There is no way these guys add enough value to their companies or the country to earn the obscene amounts of money they pay themselves. It''s a big con game where the rules are rigged by those in power. They rip off the public with 20% interest rates, then pat themselves on the back for how smart they are. They outsource jobs to other countries and pat themselves on the back about how smart they are. They create fake investments that threaten to destroy the banking system and then pat themselves on the back about how smart they are. How about finding a way to contribute to the common good of our country instead of destroying it to further enrich yourselves?

[renonv5]

Do as I say, not as I do. The Obama and Dem mantra. So hilarious and sanctimoniously hypocritical.
Posted by Credibility2

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Sorry darlin'', you are confused, that mantra is directly attributable to the Bush/Cheney regime.