Reply #4: SEC to review if BofA broke the law: report

[ozymandius]

(Reuters) – The U.S. Securities and Exchange Commission is reviewing if Bank of America Corp violated federal securities law by failing to disclose to shareholders Merrill Lynch's plan to pay $3.62 billion in bonuses before they voted for the merger of the banks, the Financial Times said.

Mary Schapiro, chairman of the SEC, wrote in a letter to a Democratic congressman that the regulator was "carefully reviewing the Bank of America disclosure" and had not yet expressed a view on whether the bonus plan should have been revealed, the paper said.

Last week, Congressman Dennis Kucinich said in a letter to the SEC that there were "significant questions" surrounding Bank of America's failure to disclose bonus details before shareholders voted on the bank's acquisition of Merrill.

http://news.yahoo.com/s/nm/20090414/bs_nm/us_bankofamerica_sec