The SEC just announced that it will be seeking to file another lawsuit against Bank of America, with regard to the Merrill acqujisition, for failure to properly disclose information to shareholders. But, they also stated that the suit would not name any executives, directors or attorneys of the Bank of America because they had no evidence that these knowingly withheld information.
That approach seems to be the most idiotic ill reasoned approach imaginable. It seems to be a FACT that when sharehoders voted to approve the Merrill acquisition, the were notinformed about the mounting losses at Merrill or the intended massive bonuses to be paid to Merrill personnel. It seems totally inconceiveable that no executive, director, accountant or attorney for the bank had any knowledge of these thngs at the time they should have been disclosed. How can the corporation be sued for failure to disclose withiut naming the individuals within the corporation responsible for that failure? Corporations only act through their officials. They do not act on their own without human intervention. So, if the Bank is clearly guilty of failure to disclose, then the individuals who participated in that failure must be held accountable. To do otherwise is not n exercise designed to protect the shareholders. Ane, what if the SEC prevails against the Bank? What if they win a big money judegment for failure to disclose? Who pays? Obviously the Bank pays and not those responsible. And, whose money does the Bank payh with? Obviously the shareholders money. If all of this is true, then it is hard to see how this new lawsuit by the SEC will in any way protect the shareholders or compensate them for the damage done by the failure to disclose. The opposite seems to be the result. The shareholders will lose again. And our government is here to help us???