New York Attorney General Eric T. Schneiderman said Friday that former Bank of America (BAC) CFO Joe Price agreed to a $7.5 million fine and to be barred from serving as an officer or director of a public company for 18 months in order to settle the state's lawsuit against him.
The deal concerns the bank's actions in 2008 when it began its merger with Merrill Lynch.
According the attorney general's office, "Despite its top executives' specific knowledge of mounting losses at Merrill Lynch that were forecast at more than $9 billion, Bank of America failed to disclose that information to shareholders prior to their vote on the proposed merger," it said in a press release.
Schneiderman also alleged former-BofA CEO Kenneth D. Lewis and Price "misrepresented to shareholders the impact that the merger with Merrill would have on Bank of America's future earnings."
