Compliance September 14, 2009

It’s a No-Go for BofA Settlement with SEC

U.S. District Judge Jed Rakoff rejected a settlement between the Securities and Exchange Commission (SEC) and Bank of America (BofA) over bonuses paid by Merrill Lynch, the Associated Press reported.

Reported by

Rakoff said the parties should be prepared for a possible trial beginning no later than February 1.

After twice sending BofA and the SEC back to come up with information, Rakoff is still not content with the proposed settlement (see “Judge Still Not Satisfied with BofA, SEC Settlement”). He wrote in an opinion today that the $33-million settlement was a “trivial penalty for a false statement that materially infected a multi-billion-dollar merger,” according to the AP.

BofA is under scrutiny for $3.6 billion in bonuses paid to Merrill executives before the bank’s acquisition of Merrill Lynch. Last month the bank agreed to pay $33 million to settle SEC charges that said BofA misled investors by authorizing the bonus payments (see “SEC Charges BofA $33M for Violations Related to Merrill Deal”).

The bank also faces a deadline today to provide more details about the bonuses to New York Attorney General Andrew Cuomo (see “BofA Fires Back at Cuomo”).





Deals & People September 14, 2009

Westrock Adds Reed to Help Expand Institutional Business

Westrock Group, Inc., announced that Dana Reed has joined the firm as head of marketing.

Reported by

Reed will be responsible for overseeing all marketing and business development activities, with a focus on growing the newly formed Westrock Institutional Group and Westrock Asset Management, according to the firm.

Most recently, Reed was a vice president in Institutional Sales at Friedman, Billings, Ramsey, where she began working in 2002. She earlier held positions in the investment banking divisions of J.P. Morgan and Utendahl Capital Partners, where she helped start the firm’s corporate finance and advisory practice. She began her career in 1996 in the investment banking division of Goldman Sachs & Co.

Last week, Westrock Group announced it had been acquired by the Lower Brule Sioux Tribe of Lower Brule, South Dakota (see “Westrock to Offer Advisory Services to Native American Tribes”). The firm also announced that its Westrock Asset Management subsidiary recently entered into a joint venture with Creighton Capital Management. The joint venture will offer quantitative portfolios to institutions and other qualified investors (see “Westrock and Creighton Join Forces in Asset Management”). 

 “Westrock has already established itself as a wealth manager of choice for individuals by offering customized products and a transparent investment process. I look forward to helping Westrock expand its presence among institutions,” Reed said.

 

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Headquartered in New York, Westrock Group is a financial services holding company offering institutional and wealth management services and composed of three subsidiaries: Westrock Advisors, Westrock Institutional Group, and Westrock Asset Management.

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