Bank of America ex-CEO Ken Lewis' statement called 'very damaging'

St. Louis Business Journal

Date: Tuesday, June 5, 2012, 6:42am CDT - Last Modified: Tuesday, June 5, 2012, 7:15am CDT

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Ken Lewis' reported admission of keeping more accurate loss projections from Bank of America    Corp. shareholders before they voted on the acquisition of Merrill Lynch could be "very damaging" to the bank and its retired CEO's defense, a legal expert says, according to the Charlotte Business Journal.

The New York Times late Sunday reportedcourt documents in a class action lawsuit revealed Lewis said, in a deposition, that he knew of larger-than-expected losses before shareholders voted on BfA's Merrill Lynch purchase in late 2008. But he did not disclose the latest numbers to investors before they voted, the article says, citing court documents. Lewis said he followed legal advice, according to the documents.

Bank of America is one of the St. Louis area's largest banks.

Read More at 

Charlotte Business Journal

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 Banking & Financial Services