ALBANY, N.Y. (AP) - Bank of America’s former chief financial officer has reached a $7.5 million deal to settle allegations he helped mislead investors about the impact of a 2008 merger with Merrill Lynch.
The settlement, announced by New York Attorney General Eric Schneiderman and filed Friday in state court, also bars Joe L. Price from serving as an officer or director of any public company for 18 months.
BofA bought Merrill in September 2008 at the height of the financial crisis. BofA was seen as a savior of Merrill, which would have likely filed for bankruptcy. But by the time the deal was finalized in January 2009, Merrill’s balance sheet had deteriorated and BofA needed government help.
Price admits no wrongdoing in the settlement. A call to his lawyer was not immediately returned.