Tuesday, August 4, 2009

Bank of America: Who pays the SEC fine? We do of course.

Bank of America (BofA) has agreed to pay a $33 million fine to the Securities and Exchange Commission (SEC) for lying to its stockholders about authorizing Merrill Lynch to pay up to $5.8 billion in executive bonuses. (You might recall that Bank of America was the financial institute that received $45 billion in bailout relief from U.S. taxpayers.)

My question is this: Where does the $33 million that BofA is going to pay the SEC come from?
Does it come from the $45 billion bailout dollars we've already given them? Or are we taxpayers going to fork over an additional $33 million? Either way you look at it, American taxpayer money will be used to pay the U.S. government fine. So who exactly is the SEC penalizing?

Oh. I almost forgot to ask, do we taxpayers write a check to pay the fine before or after we pay executive bonuses?

Bank of America: We don't care. We don't have to.

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