Bank of America is on a roll today.
After the letter the bank’s outside attorney Lewis Liman sent to Cuomo, the bank sent one to Judge Jed Rakoff, who will decide whether the settlement the bank reached with the SEC will go through or not.
The Judge said late last month that the $33 million settlement of a case brought over bank’s bonus disclosures was “puzzling,” while both BofA and the SEC pushed for it to go through.
Liman argues in the letter that BofA had agreed to settle to avoid the litigation costs (both financial and reputational.)
From the letter: Despite what it believes to be significant weaknesses in the SEC’s case. Bank of America remains committed to the proposed settlement, which it agreed to in the hope of avoiding a very public dispute with one of its principal regulators and the negative publicity that such a dispute would entail. While the civil penalty agreed to in this settlement was indeed large-especially given the lack of merit of the SEC’s case- the settlement would not unfairly harm innocent shareholders and was determined by BofA for the reasons stated t be preferable to litigating the case.
Read the letter: