The FBI and US Department of Justice (DOJ) are conducting a criminal probe into Bank of America Corp’s purchase of Merrill Lynch last year, the Charlotte Observer reported on Friday.
The investigation has been under way for six months, the newspaper reported on its Web site.
A spokesman for the bank declined to confirm whether the FBI or DOJ were investigating. Spokesmen for the FBI and DOJ neither confirmed nor denied that a probe was under way.
The bank is also being investigated by other authorities including the New York Attorney General’s office, which has been drafting charges against bank officials over accusations that they misled shareholders about losses and bonus payments at the investment bank.
“We have provided thousands of documents and had numerous meetings with various government agencies regarding the Merrill Lynch transaction,” Bank of America spokesman Scott Silvestri said.
“And we continue to believe that there is no basis for charges against the company or individuals on the management team,” he said.
Jennifer Canada, a spokeswoman for North Carolina Attorney General Roy Cooper, said the state still has an ongoing investigation into Bank of American but that she wasn’t aware of any other probes. The US attorney’s office in North Carolina’s western district declined to comment.
The Securities and Exchange Commission (SEC) reached a settlement of civil fraud charges against the bank last month, after accusing the bank of failing to disclose information to shareholders about bonuses paid to Merrill employees.
However, a federal judge in New York on Monday threw out that settlement, saying it was unfair to shareholders. He also faulted the SEC for not pursuing charges against bank officials and issued a scathing rebuke to the agency. The judge, US District Judge Jed Rakoff, ordered a trial to begin in the case on Feb. 1.
Bank of America agreed to buy Merrill Lynch a year ago this week, at the height of the credit crisis and just as Lehman Brothers was preparing to file for bankruptcy protection. It was later revealed that Merrill, with the knowledge of Bank of America executives, paid Merrill employees US$3.6 billion in bonuses just before the deal closed on Jan. 1, even though the bank lost US$27.6 billion that year.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
STRATEGIC PARTNERSHIP: The plant would make infrared, gallium nitrade and silicon carbide chips as India attempts to develop a semiconductor value chain The US and India reached an agreement to work together on setting up a semiconductor fabrication plant in the South Asian nation, giving a boost to Indian Prime Minister Narendra Modi’s efforts to bolster manufacturing in the country. The proposed plant would make infrared, gallium nitride and silicon carbide semiconductors, according to a White House readout that followed a meeting between US President Joe Biden and Modi in Delaware on Saturday. The setting up of the facility would be enabled by support from the India Semiconductor Mission and a “strategic technology partnership between Bharat Semi, 3rdiTech Inc and the US Space
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Powerchip Semiconductor Manufacturing Corp (力積電) yesterday said that it signed an agreement with Tata Electronics Pvt Ltd to help build India’s first 12-inch chip manufacturing facility with a total investment of US$11 billion. As part of the agreement, Powerchip would provide Tata with access to mature technology nodes and help to train Indian workers, the Taiwanese company said in a statement. The fab would be located in Dholera, Gujarat. It would have a capacity of 50,000 wafers per month and create 20,000 jobs in the region, Powerchip said. Tata would receive access to a broad technology portfolio of leading-edge and mature nodes, including