News Update: Bank of America (NYSE:BAC) Reached $150 Settlement With SEC Over Merrill Lynch Merger

Bank of America (NYSE:BAC) rached a settlement with the SEC over the Merrill Lynch & Co. merger, according to a Reuters report, which ended the public battle between the bank and the securities regulator.

The $150 million settlement ends two lawsuits against Bank of America. One suit alleged that the bank misled shareholders about $3.6 billion of bonuses that Merrill paid out and the other suit alleged that the bank misled shareholders about Merrill losses.

U.S. District Court Judge Jed Rakoff said, "Its greatest defect is that it advocates very modest punitive, compensatory and remedial measures that are neither directed at the specific individuals responsible for the nondisclosures nor appear likely to have more than a very modest impact on corporate practices or victim compensation. While better than nothing, this is half-baked justice at best."

CNBC is reporting that the settlement will be awarded to the original Bank of America shareholders, or pre-merger holders.

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