The Securities and Exchange Commission will be pursuing The Bank of America with charges stemming from the disclosure of bonuses to the employees of Merril Lynch.
Robert Kuzami, a SEC enforcement director, told a house panel stated that his agency with "vigorously pursuing" charges against the bank, after a judge had previously thrown out the SEC's $33 million settlement.
Federal Deposit Insurance Corporation chairman Sheila Bair chose to have her organization participate in rescuing the Bank of America back in January because she felt the entire scenario proved to be a serious threat to the financial system of America. Bair stated that the FDIC's $2.5 billion dollar risk guarantee was supposed to reduce threats to the deposit insurance fraud and the financial system overall.
Bair then went on to explain to the House Oversight and Government Reorm Committee needs to set up a serious, "very robust" process for regulators for the failures of financial institutions for future occurances. Along with that, she also reaffirmed her support for a new federal regulator council that could resolve any institutions that posed a serious threat to the financial system or any of it's elements. However, she did state that she doesn't feel that there will be another serious banking collapse like this anytime soon.
A fraction of Republican law makers have even accused thier Democratic party counterparts of forcing governmental take over of Merril Lynch and have openly accused the the Oversight Council of playing part in covering up the part Treasurery Secretary Timothy Geithner played in the whole process. Geithner was chairman of the Federal Reserve Bank of New York when all of the inital transcation occured and his spokesmen have stated several times that he played no part whatsoever in any dealings with the Bank of America.
As of this week, The Bank of America has paid back the inital recieved bailout of $45 million to the Federal Government.
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