Judge refuses to OK $33M BofA settlement

[WhiskeyGirl]

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Federal Judge Jed Rakoff said the parties had not explained why $33 million was appropriate, or whether those funds might have actually come from federal bailout dollars.

“The proposed consent judgment in no way specifies the basis for the $33 million figure or whether any of this money is derived directly or indirectly from the $20 billion in public funds previously advanced to Bank of America as part of its 'bailout,'" Rakoff wrote in his judgment.

Rakoff added that the agreement did not get to the bottom of the “very serious allegations” the SEC had made against Bank of America.

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Lawmakers have accused former Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke of unduly pressuring Bank of America CEO Ken Lewis to move forward with the merger despite growing concern about Merrill’s fiscal health.

read more here - http://thehill.com/leading-the-news/judge-refuses-to-ok-33m-bofa-settlement-2009-08-06.html