An investigation reveals the financial services firm paid millions in executive bonuses despite substantial reported losses.
WiredPRNews.com – An investigation into the finances of Merrill Lynch has revealed that the investment firm paid millions in executive bonuses despite purported losses. As reported by AFP, the firm paid nearly 700 top executives approximately one million dollars each last year before being taken over by Bank of America.
New York Attorney General Andrew Cuomo is quoted as stating in a letter to a House committee of the probe, “696 individuals received bonuses of one million dollars or more…these payments and their curious timing raise serious questions as to whether the Merrill Lynch and Bank of America boards of directors were derelict in their duties and violated their fiduciary obligations.”
The firm is stated to have awarded a total of $3.6 billion in bonuses in December. Cuomo is further quoted as stating, “Merrill Lynch’s decision to secretly and prematurely award approximately 3.6 billion dollars in bonuses, and Bank of America’s apparent complicity in it, raise serious and disturbing questions…One disturbing question that must be answered is whether Merrill Lynch and Bank of America timed the bonuses in such a way as to force taxpayers to pay for them through the deal funding.”