Martin Act | www.usspost.com
February 4, 2010 by USA Post
Martin Act | www.usspost.com:Kenneth Lewis on Thursday became the statutory objective of the Crusades New York Attorney General Andrew Cuomo, and make him a title fight against Wall Street.
Lewis, announced Como, is facing a lawsuit under the law of Martin for his leadership as chief executive of the Bank of America Bank of America when I got Merrill Lynch & Co. in 2008.
Former chief executive Louis, Cuomo alleged in his complaint, he had knowledge about the reward to pay compensation in all parts of Merrill Lynch, just as it merged with Bank of America.
Bank of America paid $ 29 a share for Merrill Lynch, which criticized the price later when it became clear the mother was the real value of Merrill for $ 1 per share.
Lewis has hinted that he had succumbed to pressure from the federal government to move forward in the procurement process. Federal Reserve System Chairman Ben Bernanke, as well as then U.S. Treasury Secretary Hank Paulson and intervened heavily in Wall Street at the beginning of the financial crisis in all parts of the world, and urged a wave of banking mergers for the stability of the financial market.
Also named in the complaint is Joseph Price, former Bank of America Chief Financial Officer and reliable Lewis, a lieutenant.
Bank of America said in a statement called the case “regrettable” and “not worthy of response.” And Charlotte (North Carolina, company maintained that she went to a deal to Merrill Lynch in “good faith” to review any penetration of the deal “did not find a basis for fraud.” Lewis, and the price, as well as Bank of America itself would fight any legal action by Cuomo, and ended the statement.
Cuomo could not be reached for additional comment.
Cuomo used the Martin Act in his investigation of Wall Street played a role in bringing on the collapse of mortgage bank called Bear Stearns, Deutsche Bank, and the collapsed Lehman Brothers, Merrill Lynch and Morgan Stanley.
Established in 1921, and the law of Martin as a powerful tool in the investigation of financial fraud in New York. Eliot Spitzer used the act to great effect in his previous campaign on Wall Street. Act is the weapon of fear of legal, because in order to be successful, and the prosecutor only prove the existence of fraud, rather than to prove intent to defraud.
Lewis enjoyed a distinguished career as chief executive until the bank’s true financial state of the Merrill Lynch to light after the implementation of the deal to buy Bank of America. With the southern drawl and reduced and clean cut appearance, and won praise for Lewis as the Chief Executive who have stood by over-top Wall Street. And CEO of Bank of America, said it is the right size the company to the retail giant, ending the investment banking, and high public expenditures, such as brokerage firms minister. Bank of America Chief Risk Officer Gregory Curl and current CEO Brian Moynihan, in fact, orchestrated the purchase with Lewis, not dealmaker by nature, beauty and play a role in the negotiation process.
But shareholders of opinion on Lewis collapsed in the wake of Bank of America, Merrill Lynch deal, which quickly became the value of the teacher to generate an embarrassing failure. In April, as he was stripped of his title high school, president of the company, a sign that he lacks unanimous support.
CEO, Luis is still until he retired last fall.
Cuomo, Attorney General, who became in 2010, is said to be planning to run for governor of New York.
CNBC commentator Larry Kudlow predicted action against Lewis would be a “fishing expedition” for Cuomo could enhance his political standing.
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