TARPGate! Cuomo Subpoenas Thain Over Bonuses

NYAG looks at when and how Thain, BofA'ers got paid.

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New York Attorney General Andrew Cuomo is trying to figure out exactly who knew what regarding some $4 billion worth of bonuses hastily shoveled to Merrill Lynch employees ahead of its merger with Bank of America (and just as BofA was asking the government for another $20 billion in TARP money to get the deal done).

From the WSJ:

In a statement Tuesday, Mr. Cuomo said his office is seeking testimony from Mr. Thain and J. Steele Alphin, Bank of America's chief administrative officer, as he looks into executive compensation issues at firms that have received money under the U.S. government's Troubled Asset Relief Program.

"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," Mr. 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."

The FT has Cuomo's statement.

  • Kirk Shinkle

    Kirk Shinkle is a senior editor for U.S. News Money and manages the Best Funds portal. Follow him on Twitter @KirkS or email him at kshinkle@usnews.com.

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