This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Shareholder Fund Gets Approval

CHARLOTTE, N.C. ( TheStreet) -- Bank of America (BAC - Get Report) shareholders have a November 12 deadline in order to file for their portion of a $150 million Securities and Exchange Commission settlement regarding the Merrill Lynch merger.

A New York federal judge gave a final approval to the settlement on Wednesday between Bank of America and the SEC allowing $150 million to be paid out to shareholders, according to a release issued late Wednesday by Rust Consulting, the fund's claims administrator.

The Charlotte-based bank funded the $150 million settlement through the so-called Bank of America Fair Fund in February.

A Bank of America spokesman was not immediately available to comment.

The ongoing controversial lawsuit, filed by the SEC last year, claimed that Bank of America failed to disclose to shareholders bonuses paid to Merrill brokers as well as a multibillion billion loss the investment bank was about to take prior to the closing of the deal on Jan. 1, 2009.

Bank of America settled the SEC suit earlier this year, after a contentious, months-long court battle.

Former Chairman and CEO Ken Lewis, who had originally called the merger the "deal of a lifetime" when it was announced in September 2008, ultimately lost his job because of the controversy surrounding the merger. Current CEO Brian Moynihan has been dealing with the mess ever since.

Unfortunately, the fair fund distribution approval does not end Bank of America's woes with Merrill Lynch. The Charlotte, N.C.-based bank is still dealing with a lawsuit filed by the New York Attorney General Andrew Cuomo in February alleging the bank committed fraud.

Shareholders on record as of Jan. 16, 2009 that own of Bank of America's common stock are eligible for a piece of the settlement. However, former Merrill Lynch shareholders who received Bank of America's stock in connection with the merger will not be eligible.

Investors can obtain further information by clicking on the following link: SEC vs. BAC Fair Fund.

Bank of America shares have been struggling along with the broader financial sector of late. Observers have noted that some hedge funds have recently swapped shares owned of Bank of America for Citigroup as concerns mount over the money-center bank's exposure to the struggling U.S. consumer.

Even though Citi is still in recovery mode, it is positioning itself for growth from its international operations, an area where many say U.S. large banks will rely on in the future for growth, given new financial regulations and the sluggish U.S. economy. Bank of America remains the second highest most actively traded stock on the New York Stock Exchange behind Citigroup (C - Get Report).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
C $46.28 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs