Wednesday, March 04, 2009

Bankers Supbpoended- finally

UPDATE: Some of the top earners at Merrill Lynch who were given $209 million in 2008 were subpoenaed by New York State Attorney General Andrew Cuomo, a source close to the investigation tells the Huffington Post.

The subpoenas were served on the seven executives - including Andrea Orcel, the firm's top investment banker (who was paid $33.8 million in cash and stock in 2008), trading chief Thomas Montag and former head of strategy Peter Kraus, who were named in the Wall Street Journal today, according to the source.

The subpoenas compel the executives, some of whom currently work at Bank of America, to come in and discuss their bonuses, who they communicated with regarding their bonuses, when they got their bonuses and other relevant information, says the source.

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Nothing seems shocking these days when it comes to bailed out banks. We learned after the Super Bowl that Bank of America had spent millions on a carnival and other perks during the event, that former Merrill CEO John Thain had doled out over a million dollars to redecorate his office and that AIG was sending its executives to a spa.

Today's Wall Street Journal article on the $209 million given to Merrill Lynch's top ten earners in 2008 takes the cake. The revelation is causing more problems for the company. The Wall Street Journal is reporting that,

"Bank of America is expected to file a motion on Wednesday in New York State Supreme Court to keep the compensation data from becoming public. Next week, Mr. Cuomo (NY's Attorney General) intends to make his case that the data shouldn't be kept confidential. A judge is expected to rule on March 13."
Cuomo's brother, Chris, also said on "Good Morning America" that Bank of America would be fighting to keep its pay structure secret.
From: Huffington Post.
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