Pension funds sue BoA over Merrill Lynch purchase
NEW YORK - The California Public Employees' Retirement System (Calpers) and the California State Teachers Retirement System (Calstrs) have filed for lead plaintiff status in a New York class-action lawsuit against Bank of America (BoA). The two funds are the largest US state pension funds; holding assets of $173 billion and $114 billion respectively. The legal challenge alleges BoA executives failed to disclose crucial information on the bank's deal to buy stricken investment bank and brokerage Merrill Lynch. Merrill went on to announce $15 billion of fourth-quarter losses within weeks of its sale and BoA has so far received $45 billion in federal bail-out funds.
Calpers and Calstrs join five pension funds that initially applied for lead plaintiff status after losing a combined $274 million between July 21, 2008 and Jan 20. The first round of plaintiffs include the Texas and Ohio state teaching pensions; Ohio's general state fund for public employees; a Netherlands fund representing the Dutch healthcare and social sector; and a large Swedish national pension fund.
The plaintiffs allege proxy statements published before the conclusion of the troubled acquisition failed to disclose Merrill's true financial condition and that BoA failed to conduct adequate research into the deal.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Dora flood pitches banks against vendors
Firms ask vendors for late addendums sometimes unrelated to resiliency, requiring renegotiation
Swiss report fingers Finma on Credit Suisse capital ratio
Parliament says bank would have breached minimum requirements in 2022 without regulatory filter
‘It’s not EU’: Do government bond spreads spell eurozone break-up?
Divergence between EGB yields is in the EU’s make-up; only a shared risk architecture can reunite them
CFTC weighs third-party risk rules for CCPs
Clearing houses could be required to formally identify and monitor critical vendors
Why there is no fence in effective regulatory relationships
A chief risk officer and former bank supervisor says regulators and regulated are on the same side
Snap! Derivatives reports decouple after Emir Refit shake-up
Counterparties find new rules have led to worse data quality, threatening regulators’ oversight of systemic risk
Critics warn against softening risk transfer rules for insurers
Proposal to cut capital for unfunded protection of loan books would create systemic risk, investors say
Barr defends easing of Basel III endgame proposal
Fed’s top regulator says he will stay and finish the package, is comfortable with capital impact