Judge Rejects BofA Settlement

A judge wouldn't approve a $33 million settlement between Bank of America and the Securities & Exchange Commission Monday, and demanded to know why the regulatory agency would ask for such a meager fee. The judge also wanted to know the names of executives who are allegedly involved in keeping secret from investors their plan to pay out billions of dollars in bonuses during the financial crisis."[If Bank of America] misled the shareholders, as you assert about a multibillion dollar matter, isn't there something strangely askew in a fine of $33 million?" asked Judge Jed S. Rakoff. The U.S. District Court judge's decision is a setback for the SEC, as it suggests the watchdog federal agency is on the same side as one of the banks it is supposed to be monitoring. "It is very difficult for me to see how the proposed settlement…is remotely reasonable," Rakoff wrote, giving the SEC and the bank until August 24 to provide more details about the settlement.