Bank of America failed to disclose losses
Bank of America disclosed a $15.3 billion loss after Merrill Lynch was acquired. They also disclosed a $20 billion bailout by the government. They then suffered a loss in stock price of more than $50 billion.
Stockholders are angered at the lack of disclosure, not to mention the stockholders’ losses, and the outcome of the shareholder lawsuit could hold officers personally liable.
According to the plaintiffs, who include the Ohio Public Employees Retirement System and a Netherlands pension plan that is the second-largest in Europe, Bank of America’s senior management, including Mr. Lewis and Mr. Price, began to learn of large losses at Merrill Lynch in early November 2008, months before the deal closed.”
Read the full account in Dealbook
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BOA Chief Executive, Brian T. Moynihan announced today that Bank of America expects attrition and the elimination of
appropriate unfilled roles [whatever that may mean] to play “a significant part” in achieving the anticipated decrease in jobs.
Other large banks led the way in reducing their work forces: Wells Fargo, Bank of New York Mellon, Morgan Stanley and Goldman Sachs have all begun cutting jobs.
HSBC, London, has also announced job cuts, with the same aim of
unemploying 30,000 workers.
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