WASHINGTON — The Securities and Exchange Commission has expanded its probe of Bank of America to include the bank’s possible failure to disclose mounting losses at Merrill Lynch, a top agency official said.
The SEC has been pursuing civil charges against Bank of America over the failed disclosure to shareholders of bonuses to Merrill employees after it was acquired by the second- largest U.S. bank. But when Ohio Democratic Rep. Dennis Kucinich asked at a hearing whether the agency has widened its probe to include disclosure of losses at Merrill, SEC enforcement director Robert Khuzami said: “That’s a yes.”
The SEC has been “and (is) looking at all aspects” related to Bank of America’s disclosures to shareholders before the merger was approved last December, Khuzami said. The Associated Press
