Bank of America to turn in Merrill Lynch documents

13 October 2009

Bank of America has agreed to hand over documents relating to the purchase of Merrill Lynch to the New York attorney general.

It had previously resisted passing on documents about the controversial deal, but in an open letter to the New York attorney general Andrew Cuomo Bank of America said that it had now reconsidered its position.

The news comes after Bank of America lawyers failed in a bid to persuade a judge to halt a shareholder lawsuit against it, reports Bloomberg.

In the lawsuit it is alleged that directors of the bank knowingly paid too much for Merrill Lynch and now owe the bank damages.

Bank of America bought Merrill Lynch for $29 dollars a share in September 2008.

Kenneth Lewis, Bank of America's outgoing chief executive officer, is alleged, along with other board members, to have known the financial condition of the brokerage was worse than had been publicly disclosed but completed the deal anyway.

The charges have been denied.

By Claire Archer

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