Sources say NY AG subpoenas 5 BofA board members

New York Atty. Gen. Andrew M. Cuomo subpoenaed five Bank of America Corp. directors Wednesday as investigators prepared to file charges against the bank’s senior executives in connection with its acquisition of Merrill Lynch & Co., according to a source familiar with the investigation.

Investigators believe that the five directors have the most knowledge relevant to the inquiry, which focuses on whether Bank of America shareholders were misled about Merrill’s financial condition and executive bonuses before voting last December to approve the deal.

Cuomo plans to subpoena most, if not all, of the directors over the next several weeks, said the source, who spoke on the condition of anonymity because the investigation is ongoing.

Bank of America Chief Executive Kenneth D. Lewis has already testified.

Board members will be asked about whether the bank withheld material information from shareholders, including the $15 billion in additional losses at Merrill that were disclosed weeks after the merger and the $3.6 billion in bonuses it paid to employees shortly before the deal closed.

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Tse writes for the Washington Post.