By James Call
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-884660.mp3
Tallahassee, FL – Florida's top financial regulator on Tuesday recommended that the state not join in a New York law suit against Bank of America. Five states say the bank's management perpetrated an enormous fraud when it failed to disclose losses while acquiring Merrill Lynch.
Investors, including the state of Florida's pension fund, say they loss hundreds of millions of dollars when Bank of America failed to disclose information concerning the acquisition. The state's top financial regulator, Thomas Cardwell, says the state should monitor a New York court case, but not join it. That was not the response CFO Alex Sink wanted to hear. She says she expects to see a change in attitude.
"I'm sure I'll be talking to him about what he needs in order to truly protect Florida's consumers from these Ponzi scheme artists and securities fraud and mortgage broker fraud and the whole gamut of what he is responsible for."
Bank of America's 2008 takeover of Merrill Lynch has spawned numerous
lawsuits. The State Board of Administration is a party to one that makes allegations similar to those made by New York.