Rep. Ed Towns: Merrill Execs May Have "Obstructed" Investigation

Rep. Edolphus Towns, Chairman of the House Committee on Oversight and Government Reform, came out in support of Attorney General Andrew Cuomo on Thursday, saying he had directed his attorneys to investigate the Merrill Lynch bonus saga.

Cuomo has been looking into $3.6 billion in bonuses Merrill Lynch paid out last year, just weeks before unveiling a $15.8 billion loss. The bonus payments were also handed out just prior to the bank's acquisition by Bank of America.

Executives at Merrill and Bank of America have refused to disclose the names of the bonus recipients, which include about 700 bankers that received at least $1 million each.

On Wednesday, Cuomo released filings that included a letter from Merrill Lynch dated November 24, 2008 to the House committee that said a decision on the bonuses would not be made until year end. But according to testimony taken by Cuomo, the bank's compensation committee had, in fact, already decided on the bonuses on November 11.

"The Committee takes very seriously Attorney General Cuomo's allegation that Merrill Lynch provided misleading information to Congress regarding bonuses for its top executives."

He continued: "These filings raise the disturbing possibility that Merrill Lynch executives may have obstructed this Committee's investigation into executive compensation practices and the awarding of bonuses at the company."

Towns has directed his attorneys to focus on whether Merrill executives tried to cover up the decision to pay out bonuses, and as part of the cover up, whether the bank's executives deliberately mislead the House committee.

In addition, the lawyers "are also reviewing the responses of other major financial institutions to our October 2008 letters regarding executive compensation and the use of TARP funds."

Comments

[SangZe]

Aw, what's a littel bonis hear and their? It ain't gonna hert anywon.

[DestinationsUnknown]

Are you aware of the 'largest private financial fraud' in our country's history that ended December 2008? I will give you a hint: It was not 'low income housing' mortgages, it was publicly traded HEALTHCARE Companies dumping their losing asset, home healthcare into a private company.

The one and only executive acquitted in this case out of more than 12 convicted was James K Happ; jurors said prosecutor did not do his job! Guess where James K Happ came from? Columbia Homecare Group, he was the CFO! Merrill was involved here also; but the PROSECUTOR did not do his job!

[Teri]

ed towns has done NOTHING in all the years that he has been in congress. he is my congressman, unfortunately, and is nothing but a LOSER. fu*k ed towns!

[JFaye]

Who is paying for these attorneys?

[dave1111]

You mean our tax dollars that are paying for BofA attorneys?

[FreetoBme]

MSNBC should have included a report card for GWB in the same poll.

[JFaye]

For MSNBC to run this poll, a non-scientific poll with absolutely no control and then release the results is ridiculous.

Right about now, I'd like to participate in a poll about what I really think about MSNBC... Once the FOX lovers/MSNBC haters pile on, MSNBC would perhaps understand their own foolishness.

[DestinationsUnknown]

I tell you, it is REPUBLICAN IDOL in the morning congreeman and sidekick show!

[garymc8]

The biggest criminals on earth are the White Republican Males, and their Hypochristian supporters!

[sandiegowoman]

Of course they obstructed, lied and stole. There are not 700 bankers in the whole country that should get $1,000,000,000 bonuses much less at one institutio­n.........­........

[endworldhunger]

Did you know that according to the Borgen Project only $19 billion a year is needed to end world hunger- a tiny amount compared to how much money has recently been spent on federal bailouts to irresponsible corporations. According to the FAO, the global benefits of reducing the number of hungry by half would be at least $120 billion per year as a result of longer, healthier and more productive lives for several hundred million people. Furthermore, A study conducted by the U.S. estimated that if the World Food Summits goal of reducing hunger by half is met; it will lower the cost
of peacekeeping and humanitarian operations by $2.5 billion per year.

[rubinoff]

OT

btw, received the following via e-mail:

btw: receive the following via e-mail:

MSNBC has a poll up about Obama so far. Republicans are flooding it with "F" votes. Pass this address on,

http://www.msnbc.msn.com/id/29493093/

[helonias]

But why would a rich christian nation do such a thing?

Would god bless us or something

[howcome]

How come he isn't investigating Baraney Frank and Max Waters ( see below) , they should be sharing yard time with Maddoff... And how about the latest Dodd antics

[Pupster]

Why not Dick Cheney? His own firm, Halliburton, moved to Dubai to avoid paying US taxes. Then their subsidiary KBR, which has billions in no-bid US contracts (arranged by Cheney likely) just finished their move to the Cayman Islands so they don't have to pay US taxes. The numbers dwarf any complaint you may have against Frank or Waters.

BTW, you may want to educate yourself. Though Fannie and Freddie are problems, they were not the cause of the real estate bubble or subsequent problems. That's just a right-wing talking point that's just plain wrong (or a lie).

[Oonagh]

You are so right, our tax dollars are going offshore and it is no wonder our economy is in the tank. We can all say thanks to bush and cheney with their no bids to their buddies...­.

[TakingBackTheUSA]

How come you're trolling and cant stick to the subject.

[Eoin45]

howcome you can't spell Barney and Maxine? howcome you can't stick to the topic?

[GreatNews27]

He's just angling for a campaign contribution in the high 6 figures. Once he gets that, well, we have to look forward, right?

[Eoin45]

Proof? Didn't think so.

[mervr1]

I see a good many Bankers and CEO's shaking in their boots now that Madoff has been sent straight to prison.

Who's next?

[Pupster]

Madoff is not why they are shaking in their boots.

[Char59]

What about Sean Hannity's friend Stanford!

[Telemachus]

Let the tumbrels roll.

[TXfemmom]

I am beginning to think that the French really did have it right during their revolution­...sending these people to prison, somehow, doesn't seem to be enough to keep them from letting greed run amuck, but a few carts and chop..chop­s and they may think longer and harder before they get involved in this kind of thing.

[Hawaii5-0]

Is it becoming obvious that the system is set up to reward the top execs at banks and investment firms regardless of how well they perform of how much damage they have caused in our financial systems? Or perhaps the financial systems were only set up to pump money to them and now it is more out in the open as they ask for more govt bailouts because their firms cannot remain solvent after paying out the bonuses.

[Pupster]

Actually, the system that rewards top execs isn't limited to banks and finance firms. It's symptomatic of the cushy relationships between boards, which are supposed to put the company's interests first, and senior executives. It's what allows situations like Tyco and Dennis Kozslowski (which turned out to criminal) and Home Depot and Bob Nardelli (which was not, but pretty disgusting anyway).

Believe it or not, finance firms reward at least on the semblance of performance (though pretty much everyone in finance is overpaid), because their results are more quantifiable.

Until boards are reformed, and not filled with cronies of the CEO and made up of his buddy-CEOs, without being stopped by the shareholders, you are still going to get these obscene pay packages.

[sophistwatch]

I have an idea on how Berkshire can profit off this down turn. Have Tiffany start producing high quality silver "bracelets" for the discriminating criminal".

[dandypuddin]

HA!

[AnitaG]

It is time the AG of NY showed Merrill that there is only 1 set of laws in this country and they apply to all. Each one of those people that received a bonus should give it all back and be fired for even taking it. Come on your country is in the toilet and you take millions on unearned funds. Have we all lost our humanity and become totally greedy. I know it is human nature to want more, but the greed has gotten out of hnd. The only way to stop it, is put these people in jail where they belong.

[RobinLandseadel]

How is this day different from any other day?

We have been ripped off blind by this "class" of thieves for generations.

[JoeBlough]

The Bush Legacy has set the precedence that there is indeed “two sets of rules”. One for the haves and one for the have-nots.

[totheknee]

Your pea brain must kick in after you speak.

[atlantajoe]

And don't forget about the third law, if you are a dem politician, you can write tax but don't have to follow it. Rangall, gaethner and chris Dodd come to mind.

[TakingBackTheUSA]

Indeed there are two sets if rules. If you question that, review the judgements in the case of Enron's executives. Would any ordinary citizen get to stipulate WHEN they went to prison so that they and their significant other, who was also sentenced, can alternate turns taking care of the kids? Or for "Scooter" Libby? Would any average citizen immediately have their sentence commuted after outing a CIA agent and ruining their cover? No, we'd be hauled off to club fed without a second thought. So to refute the FACT that there were two sets of rules under the Bush administration is a supreme display of both denial and ignorance.

[dave1111]

Laws are like speed bumps to these people.