Former Merill Lynch CEO John Thain has refused to testify on certain apsects of Merril Lynch’s bonus awards, prompting state attorney general Andrew Cuomo to file a motion in state court accusing Bank of America of interfering with its investigation. Thain has offered some answers to some of Cuomo’s questions, but claims that Bank of America’s attorneys are prohibiting him from addressing the bonuses of certain individuals.
Charlie Gasparino broke the story on CNBC. Cuomo has been investigating the billions of dollars of bonuses paid to Merrill Lynch employees shortly before it merged with Bank of America. After the merger, it was revealed that Merrill Lynch had lost tens of billions of dollars in the last quarter of 2008. Both banks were operating with TARP fund injections in the fourth quarter.
Cuomo’s motion reportedly seeks to compel Thain to address the questions he claims Bank of America has ordered him to keep quiet about.