Tuesday, March 24, 2009

Interesting tidbit

Who gave these clueless guys control of our public employee's retirement money? Remember this post?

Courtesy of the Sacramento Bee:
State pension funds aim to lead suits against BofA

By Dale Kasler
Published: Tuesday, Mar. 24, 2009 - 12:00 am | Page 9B

California's two big public pension funds sought "lead plaintiff" status Monday in shareholder lawsuits against Bank of America over its controversial merger with Merrill Lynch.

If granted, the status would give the California Public Employees' Retirement System and California State Teachers' Retirement System considerable influence over the shareholder suits pending against BofA. It's expected that the various suits will be consolidated into one case.

BofA took over Merrill Lynch as the financial crisis gained steam last fall. After the deal closed, new information emerged suggesting that Merrill was in worse shape than previously believed.

The suits allege BofA misled its shareholders by not disclosing the depths of Merrill's problems while shareholders were considering whether to support the deal. The pension funds are seeking compensatory damages.

BofA's shares have fallen by about half since shareholders approved the deal Dec. 5; the stock closed Monday at $7.80, up $1.61, on the New York Stock Exchange.

"Our boards are very much wanting to hold Bank of America accountable," said CalSTRS spokeswoman Sherry Reser.

She said CalSTRS owned about 16.5 million shares of BofA as of last June, the latest figures available. CalPERS owns nearly 19 million shares, according to Thomson Financial.

No comments:

Post a Comment