WASHINGTON U the Securities and Exchange Commission Will Continue to "Vigorously
Byline: Marcy Gordon Associated Press
WASHINGTON u The Securities and Exchange Commission will continue to "vigorously pursue" its charges against Bank of America over disclosure of bonuses to employees of Merrill Lynch, a top agency official said Friday.
SEC Enforcement Director Robert Khuzami told a House panel examining the bank's acquisition of Merrill last December the agency will go to trial with its charges, after a judge threw out the SEC's proposed $33 million settlement. He left open the possibility that the agency could bring additional charges, possibly against bank executives.
Federal Deposit Insurance Corp. Chairman Sheila Bair said her agency took part in the rescue of Bank of America in January because its condition posed a threat to the financial system.
Bair said the FDIC's $2.5 billion risk guarantee was intended to reduce the threat to the system and the deposit insurance fund. This week Bank of America repaid the $45 billion bailout it received.
The SEC "will continue to vigorously pursue our charges against Bank of America and take all necessary steps in an effort to prove our case in court," Khuzami said. …