BofA's Ken Lewis agrees to three-year ban

Bank Of America Corner Signs

Former Bank of America Chairman Kenneth Lewis agreed to a three-year ban on serving as a public company’s officer or director and to pay $10m to settle claims by New York’s attorney general that he misled investors about the bank’s 2009 purchase of Merrill Lynch.

Bloomberg reports that under the agreement, announced yesterday by Attorney General Eric Schneiderman, the bank will pay $15m to resolve claims against it. The bank, the second largest in the U.S., agreed to corporate governance reforms as part of the settlement.

The agreement is 'one of the first successful attempts by law enforcement to hold accountable a CEO or individual at a major institution' since the financial crisis, Schneiderman said in a statement. Also Thursday, Bank of America agreed to a $9.5bn settlement to resolve claims it misled government-backed buyers of mortgages packaged into bonds.

Bank of America was accused of failing to disclose mounting losses of more than $9bn at Merrill Lynch as it sought to merge with the brokerage firm during the height of the financial crisis. The bank will pay Lewis’s $10m share of the settlement, said a person familiar with the agreement who asked not to be identified because the matter wasn’t public.

To access the complete Bloomberg article hit the link below:

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