If you bank with Bank of America, the privilege of using your debit card will cost you $5 a month starting next year. The new fee has something to do with a change in banking regulations; banks had previously charged retailers an average 44 cents when a customer pays with a debit card. But the Dodd-Frank Act's Durbin amendment, which takes effect Saturday, caps fees at 21 cents per transaction. Banks will lose billions and fees, and these poor bankers need to recover that lost revenue somehow—so they're turning to you, reliable consumer, for help. more ›

NY Attorney General—and presumed gubernatorial candidate—Andrew Cuomo is reportedly looking into whether banks such as Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Crédit Agricole and Merrill Lynch (now owned by Bank of America) duped credit ratings agencies about mortgage securities. According to an AP source, Cuomo "is trying to figure out if banks provided the agencies with false information in order to get better ratings on the risky securities." more ›

Former Tennessee Congressman Harold Ford Jr. wasn't worried that people considered him a carpetbagger for running for Senate in New York, but he was "dumbfounded" by the fact the pro-choice groups wouldn't support his campaign, according to the Times. Before dropping out of the race, Ford—who once labeled himself as pro-life—tried and failed to win over abortion rights activists. "He was dumbfounded that it kept tripping him up," said a friend. more ›

Possible Senate candidate Harold Ford has been bashed by his likely rival for not disclosing whether or not he received a "taxpayer-backed bonus" from his job at Merrill Lynch. Turns out he didn't really need a bonus, because his unusual Wall Street contract promised him at least $2 million per year, regardless of his performance. more ›

A sour new press release sent from Senator Kirsten Gillibrand's campaign minutes ago is titled "Simple Yes or No Question: Did Harold Ford Jr. Dodge NY Taxes to Claim His Merrill Lynch Bonus in Tennessee?" But back in 2006, she was faced with a similar question, and gave no simple answer. Her Republican opponent for a seat in Congress asked her to release her tax records, but the Democrat put her foot down, saying she refused to be "bullied," reports the Post. Sounds familiar. more ›

Last April Merrill Lynch hired stock broker Steven Mandala, giving him a $780,000 loan to lure him away from Maxim Group, where he was, they believed, a hot-shot partner who managed $300 million worth of assets. But now the firm says Mandala, 29, ran a savage burn on them, giving them forged pay stubs and tax returns to seem more successful than he was. Then, a week after depositing the loan into his parents' bank account, he bought a red Ferrari for $245,580. And as if the sight of an unscrupulous Wall Street guy throwing money away on a car wasn't shocking enough, Mandala "frequently did not show up at his new job and brought in only two or three clients with assets of about $20,000," says the Manhattan DA. more ›

While facing criticism for being a carpetbagger, former Tennessee congressman and likely Senate candidate Harold Ford swore he was an authentic New Yorker based on his taxes: "I pay taxes there, and once you pay taxes there, you feel like a New Yorker." But records show that Ford has never filed a tax return in New York state. more ›

Former Tennessee lawmaker, current Wall Street worker, and possible Senate candidate Harold Ford has already taken heat from his likely rival for not disclosing whether or not he earned a "taxpayer-backed" bonus for his work at Merrill Lynch. Now, he's taking heat from himself. Sen. Kirsten Gillibrand's campaign is circulating a video of a March 2009 appearance by Ford on MSNBC in which he says there is a need for greater "transparency" regarding banking bonuses funded with TARP money. more ›

Sen. Kirsten Gillibrand wants her likely Democratic rival to tell voters if he received a "taxpayer-backed" bonus from his Wall Street job. Gillibrand is pushing former Tennessee lawmaker, current Merrill Lynch employee, and possible Senate candidate Harold Ford Jr. to say whether or not he received cash during a controversial round of bonuses at the end of 2008 from companies that were bailed out with TARP funds. more ›

Now that Bank of America has agreed to a $150 million settlement with the Securities and Exchange Commission, NY Attorney General Andrew Cuomo has filed a lawsuit against the bank and its former CEO and CFO, accusing it of misleading the government and investors in its purchase of Merrill Lynch. Cuomo said, "This merger is a classic example of how the actions of our nation’s largest financial institutions led to the near-collapse of our financial system. Bank of America, through its top management, engaged in a concerted effort to deceive shareholders and American taxpayers at large..." more ›

The fallout of its Merrill Lynch deal continues: Today, Bank of America agreed to reveal private documents about its Merrill takeover. A spokesman said, "We don’t have anything to hide... Attorney-client privilege is an important business principle, but the pressure in multiple inquiries to provide additional insight convinced us it is appropriate to waive in this instance to get the issue behind us." Someone eager for these documents: AG Andrew Cuomo, who blasted the company for letting Merrill give $3.6 billion in bonuses even though it had a $9 billion 4th quarter loss. more ›

Bank of America CEO Kenneth Lewis announced he would resign at the end of the year. One analyst tells Bloomberg News that Lewis had become a "distraction" after taking over Merrill Lynch and buying subprime mortgage company Countrywide, "He’s drifting out to sea like a dying Eskimo, knowing the company can do better and thrive without him." more ›

Federal Judge Jed S. Rakoff rejected the $33 million settlement that the Securities and Exchange Commission accepted from Bank of America over the $3.6 billion in bonuses paid to Merrill Lynch employees. BoA, which acquired Merrill, knew Merill was about to post $9 billion in fourth quarter losses yet went ahead with the bonuses; Rakoff found that BoA "materially lied" to shareholders about the losses. more ›

Attorney General Andrew Cuomo is continuing to investigate Bank of America's acquisition of Merrill Lynch—and he's not very happy with BoA's uncooperative, client-lawyer confidentiality stance! His office sent a letter (PDF) saying that they found four instances where the company failed to disclose "material non-public information to shareholders" (such as Merrill's $9 billion 4th quarter losses, $3.6 billion accelerated bonus payments), "The facts of the cascading losses and bonus payments -- and the facts of Bank of America's senior executives' knowledge of these events -- are straightforward. However ... the decision-making process by which Bank of America and its executives decided not to disclose these material facts to Bank of America's shareholders has been hidden from our investigation by Bank of America's repeated invocation of the attorney-client privilege." Additionally, there are questions surrounding the dismissal of BoA's general counsel: "[Timothy] Mayopoulos was let go the day the bank informed its board that Merrill was bleeding money at an unexpected pace," just days after he discussed the "mounting losses at Merrill Lynch, which were not disclosed to shareholders before the deal closed" with BoA's CFO. Yeah, that's not fishy at all! more ›

Merrill Lynch's decision to hand out extravagant bonuses last year— as it was about to lose $15 billion in the final quarter—continues to cause problems for Bank of America, which acquired Merrill. Even though the Securities and Exchange Commission (you know, the agency that was supposed to keep tabs on Madoff) settled a lawsuit against BoA for the bonuses, to the tune of BoA paying $33 million, a federal judge has refused to approve the settlement! The SEC complaint said that BoA lied about letting Merrill pay as much as $5.8 billion in bonuses (Merill paid out $3.6 billIon), leading Rakoff to point out that if BoA did in fact break the law, then there's "something strangely askew in a fine of $33 million." He added that both companies "effectively lied to their shareholders... Do Wall Street people expect to be paid large bonuses in years when their company lost $27 billion?"—$27 billion is the amount that Merrill lost. And when a BoA lawyer pointed out that much of the bonus money was shared by people making an average of $91,000/year, Rakoff said, "I’m glad you think that $91,000 is not a lot of money. I wish the average American was making $91,000." more ›

Attorney General Andrew Cuomo says that the U.S. government pressured Bank of America to buy Merrill Lynch. Cuomo had questioned BoA CEO Ken Lewis over Merrill's $15 billion loss for the 4th quarter of 2008—namely whether the company hid that information from shareholders—and Lewis said that he was warned by Treasury Secretary Henry Paulson (pictured) and Federal Reserve Chairman Ben Bernanke that failing to take over Merrill, as troubled as it was, would "impose a big risk to the financial system." Further, Paulson "may have threatened to remove the bank’s management and board if they didn’t comply," according to Cuomo's letter to Congress. Cuomo has been investigating BoA and Merrill after Merrill handed out extravagant bonuses to executives. more ›

NY Attorney General Andrew Cuomo scored a win when a judge ruled that the names of Merrill Lynch employees who received big bonuses are not secret. New York State Supreme Court Justice Bernard Fried wrote, "The record does not support the intervenors' claim that the employee compensation information is a trade secret." Cuomo, who has been seizing outrage over crazy bonuses for employees at companies receiving bailouts funds, says he'll make the names of the Merrill employees public, possibly even today. While headhunter called it a "witch hunt," Cuomo said it was a "victory for taxpayers" and heeded this warning, "Bank of America [which took over Merrill Lynch] chose litigation over transparency and we are gratified that this tactic has failed. AIG should take heed and immediately turn over the list of bonus recipients we have subpoenaed." more ›

NY State Attorney General Andrew Cuomo, in his quest to get to the bottom of Merrill Lynch's extravagant bonuses right before announcing a $13.8 billion 4th quarter loss, told a judge, "We respectfully request that the court reject Bank of America’s continued efforts to stymie the attorney general’s investigation." Bank of America, which bought Merrill, has allegedly threatened to sue an employee for cooperating with Cuomo's investigation. The bank says it "has continually offered to provide the information the attorney general is seeking if he would agree to an appropriate confidentiality agreement. He has continually declined," (Cuomo wants to air all the dirty laundry). Additionally, the AG's office says it has found signs of "trading irregularity"; per Bloomberg News, a London-based Merrill trader who "recorded a trading profit of $120 million for the fourth quarter may instead have lost a large amount." Bank of America and Merrill Lynch have received a combined $45 billion in bailout funds. more ›

Former Merrill Lynch CEO and connoisseur of finely decorated offices John Thain obeyed a judge's order that he spill the beans on Merrill's $3.6 billion in bonuses. See, Thain claimed he wasn't allowed to discuss the extravagant bonuses—which came right before Merrill announced a $15 billion 4th quarter loss—which pissed off Cuomo, who then filed a motion to force Thain to speak up. The Daily News reports, "Dodging a press gauntlet, Thain slipped into the lower Manhattan tower that houses Cuomo's offices through a subway entrance." But Thain still left through a back entrance, which was perfect opportunity for some photo ops. Thain's former bosses at Bank of America (which took over Merrill) were also subpoenaed by Cuomo. more ›

When Andrew Cuomo doesn't get what he wants, he goes to court! Apparently the Attorney General was trying to get former Merrill Lynch CEO John Thain to detail the extravagant bonuses he gave in a deposition—but Thain refused, claiming Bank of America (which took over Merrill) said he couldn't discuss them. So now Cuomo has "filed a motion in New York state court that would force Thain to provide details" and says Thain's refusal "obstructs" the AG's office's investigation. Merrill Lynch distributed $3.6 billion in bonuses—seemingly moving up their bonus schedule—just before announcing a $15 billion loss for the 4th quarter of 2008. more ›

Do not mess with Attorney General Andrew Cuomo! Cuomo detailed his office's dealings with Merrill Lynch—namely how they asked Merrill what they were doing about 2008 bonuses in October but Merrill ignored them and apparently moved up their bonus schedule to spread billions in bonus money—in a letter to Rep. Barney Frank. You can read the letter (PDF) but here are some calculations: "The top four bonus recipients received a combined $121 million; The next four bonus recipients received a combined $62 million; The next six bonus recipients received a combined $66 million... Overall, the top 149 bonus recipients received a combined $858 million; 696 individuals received bonuses of $1 million or more." Cuomo also accused Bank of America, which bought Merrill Lynch, of being complicit in the bonus debacle. more ›

Attorney General Andrew Cuomo wants former Merrill Lynch CEO John Thain to further spill about the bonuses given last year. Thain has come under fire for going ahead with $4 billion in bonuses last December, as the company was about to report a 4th quarter loss of $15 billion. Cuomo, who has subpoenaed Thain, said, "The fact that Merrill Lynch appears to have moved up the timetable to pay bonuses before its merger with Bank of America is troubling to say the least and warrants further investigation." Bank of America, which is taking over Merrill, fired Thain last week and claims it had no legal right to stop Thain from issuing the bonuses; Thain said in a memo to employees, "The total bonus pool was also substantially less than the amount allowed under our merger agreement." more ›

Fired Merrill Lynch CEO John Thain is going on the offensive, claiming that Bank of America knew that he and other ML execs were giving out $15 billion in bonuses, not to mention BoA knew Merrill was losing $15 billion during the 4th quarter. But did BoA, which announced it was taking over Merrill in September, know about his $1 million office decorating account? Oh, Thain claims that was a mistake. Clusterstock has the leaked memo Thain sent to ML employees—"We were completely transparent with Bank of America. They learned about these losses when we did."—and CNBC will broadcast an interview with Thain at 4:15 p.m. BoA, which is getting $45 billion in TARP money, tells CNBC that Thain and Merrill's "compensation committee made the decision on the amount and timing of year-end compensation. We had no legal right to challenge it." more ›

New documents show was Merrill Lynch was in its final days before getting swallowed up by Bank of America last year, its CEO John Thain was spending lavishly on all sorts of personal expenses—hello $87,000 rug! The Daily Beast reveals that Thain hired celebrity designer Michael Smith to refurbish his office for $800,000—eight times what Smith is getting paid to redesign the White House right now. While telling employees to spend with self-control, Thain paid his driver a total of $230,000 in salary, overtime and bonus—double what many executives paid their drivers. One luxury Thain scaled back on during the year Merrill Lynch lost $12 billion was his usual multi-million dollar annual bonus, after heavy pressure from Attorney General Andrew Cuomo. Now, Thain has just announced that he will step down as CEO a month after the merger takes place. more ›

Banking giant Citigroup announced its fifth straight quarterly loss—this time, it's $8.29 billion—and described plans to restructure. The NY Times reports, "Citigroup confirmed that it would divide, for management purposes, into two separate businesses — Citicorp and Citi Holdings," and the company's statement read, "We are setting out a clear road map to restore profitability and enable us to focus on maximizing the value of Citi." CEO Vikram Pandit added, "Our results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy." more ›

The NY Times has been running a series of articles "exploring the causes of the financial crisis" and, for today's piece, it explores Wall Street bonuses. And how small groups of senior executives got very real bonuses when their companies' profits were imagined. The prime example is Merrill Lynch's bonus system: In 2006, $5-6 billion in bonus money was handed out; Dow Kim, who headed the mortgage business, made $35 million (99% in bonus money). "But Merrill’s record earnings in 2006 — $7.5 billion — turned out to be a mirage. The company has since lost three times that amount, largely because the mortgage investments that supposedly had powered some of those profits plunged in value." A Harvard Law professor chimes in, "Compensation was flawed top to bottom. The whole organization was responding to distorted incentives.” Which brings us to the present: Credit Suisse is using "illiquid assets" to pay bonuses! more ›

get bonuses this year. A NY Times editorial, which acknowledges that Thain's actions probably saved Merrill, says, "Bankers and financial regulators will ultimately have to design a pay structure that rewards bankers for the performance of their strategies over several years, not just the current year or quarter." more ›

Two separate reports show that monthly layoffs are at their highest level in almost seven years. CNBC reports that outplacement firm Challenger Gray & Christmas cites November job losses to be "181,671, up 61% from October and 148% higher than November 2007" while payroll company ADP says November job cuts were around 250,000. (Back in January 2002, layoffs were at 248,475.) And more are coming: In its takeover of Merrill Lynch, Bank of America may cut up to 30,000 jobs (they will cut at least 10,000), through layoffs, attrition, and sales of business units. With that news, stock futures are down. more ›

After the Dow Jones industrial average fell 504 points--the most since September 17, 2001--yesterday upon news of Lehman Brothers's bankruptcy, the sale of Merrill Lynch, and A.I.G.'s troubles, Wall Street is in for another difficult day. Asian stock markets were down sharply: Tokyo's Nikkei was down 5%, Seoul's Kospi was down 6.1% and Hong Kong's Hang Seng fell 5.9%. more ›

The financial industry's worst weekend ended on these notes: Lehman Brothers filed for bankruptcy, after being unable to find a buyer; Bank of America, previously interested in Lehman Brothers (but didn't want to buy it with government protection) decided to buy Merrill Lynch for $50 billion; and it's worried AIG and Washington Mutual will fall next. The financial markets are expected to be in tumultuous territory, and a banking analyst told USA Today, "We are in a hysteria." more ›