NEW YORK (AP) — New York Attorney General Andrew Cuomo is subpoenaing former Merrill Lynch CEO John Thain and Bank of America's chief administrative officer, J. Steele Alphin, as his office investigates bonuses Merrill paid executives just before being sold to Bank of America.
Thain resigned last week from his new role as head of the wealth management division of the combined companies. The resignation came amid growing concern about Merrill paying out large bonuses while the sale nearly fell through because of mounting losses at Merrill.
Merrill lost $15 billion in the fourth quarter.
The attorney general's office is coordinating a review of all executive compensation for banks that are receiving federal funds through a program aimed at stabilizing the sector.
This program aired on January 27, 2009. The audio for this program is not available.