Federal Court Judge Jed Rakoff refused to sign off on a proposed settlement between the SEC and Bank of America which would have allowed Merrill Lynch to pay $3.6 BILLION in bonuses to employees – $2.2 BILLION less than what Bank of America previously authorized in bonus payouts.

The issue here wasn’t the fact that BAC originally allocated over 10% of its TARP funds (tax dollars) to line the pockets of its elite hierarchy. Instead, Rakoff was “troubled” by BAC’s proxy documents which said that Merrill would not award bonuses before the merger between the companies was complete. Interestingly, BAC had already authorized Merrill’s payment of bonuses.

Dishonesty and underhandedness in the nation’s leading banks?? Who would’ve thunk it!

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