Lewis to be subpoenaed

Kenneth Lewis, chief executive officer of Bank of America Corp, was subpoenaed by New York Attorney General Andrew Cuomo, who is investigating whether the bank misled investors related to its acquisition of Merrill Lynch & Co, a person familiar with the matter said.

Cuomo subpoenaed former Merrill CEO John Thain and Bank of America Chief Administrative Officer J Steele Alphin last month for information related to bonuses paid to Merrill executives before the January 1 completion of the takeover.

The attorney general said at the time that it was “troubling” that Merrill appeared to have accelerated the timetable for bonuses typically paid early in the calendar year. His probe is part of an investigation into billions of dollars of payments to executives by New York-based Merrill late last year.

Cuomo is also reviewing how and when Charlotte, North Carolina-based Bank of America disclosed information about Merrill’s financial health, according to a person familiar with the investigation. Thain, 53, was dismissed in January by Lewis, 61. The move came after the disclosure of the bonuses and an unexpectedly large $15.3 billion fourth-quarter loss at Merrill that forced Bank of America to seek further aid from the US government.