Bank of America Can't Catch a Break

Updated to correct the value of the settlement with the SEC on a per share basis.

CHARLOTTE, N.C. (TheStreet) -- Bank of America (BAC) investors could receive a $150 million reward and new voting rights on compensation if a legal settlement is approved, though the company's legal entanglements related to its Merrill Lynch deal appear to be far from over.

Bank of America moved toward settling two Merrill-related legal entanglements on Thursday, one with the Securities and Exchange Commission, and another with the North Carolina Attorney General, just as another state attorney general filed suit. It also continues to face shareholder lawsuits and other regulatory investigations over controversial management decisions ahead of the deal's closing on Jan. 1, 2009.

The SEC is seeking approval of a $150 million settlement with the bank -- more than four times as much as its initially proposed settlement of $33 million. The new settlement must be approved by New York State Judge Jed Rakoff, who rejected the first settlement as inadequate and unfair.

The money would be distributed to shareholders as part of the SEC's "Fair Fund" program. Given Bank of America's current 8.65 billion in outstanding shares, according to CapitalIQ, the amount equates to roughly 1.7 cents per share.

The SEC opted not to pursue charges against individual executives, finding that "no one acted with any intent to mislead," Bank of America said.

The bank will also pay its headquarters state of North Carolina $1 million, to be used for strengthening consumer protection, though it is "not a penalty or a fine." The SEC will also collect a $1 disgorgement fee.