New York state officials said Tuesday they had begun a probe into "billions of dollars" in bonuses paid by investment giant Merrill Lynch days before a takeover announced by Bank of America.
State Attorney General Andrew Cuomo said his investigators had issued a subpoena to former Merrill chief executive John Thain and others to look at the "troubling" allegations.
The move is part of a probe into firms receiving aid from the US government's Troubled Asset Relief Program, a 700-billion-dollar rescue fund.
"Today, as part of our ongoing inquiry into executive compensation issues at institutions who have received TARP funds, my office issued subpoenas seeking the testimony of former Merrill Lynch CEO John Thain, as well as the testimony of Bank of America chief administrative officer J. Steele Alphin," Cuomo said in a statement.
"These subpoenas are part of an ongoing inquiry into billions of dollars in bonuses paid by Merrill Lynch late last year just days before Merrill was taken over by Bank of America," Cuomo said.
"The fact that Merrill Lynch appears to have moved up the timetable to pay bonuses before its merger with Bank of America is troubling to say the least and warrants further investigation."
rest http://rawstory.com/news/afp/New_York_state_to_probe_billions_in_01272009.html
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