Violation Tracker Individual Record

Company: 
Merrill Lynch & Co.
Current Parent Company: 
Bank of America
Penalty: 
$3,458,333,333
Year: 
2008
Date: 
August 21, 2008
Primary Offense: 
investor protection violation
Violation Description: 

Merrill Lynch, Goldman Sachs and Deutsche Bank agreed to buy back $10 billion in securities as part of the resolution of multistate litigation alleging they misled customers in the marketing and sale of auction rate securities. The announcement did not specify how much each company would buy back. Here we assume the total was divided evenly between them. They also agreed to pay civil penalties; for Merrill Lynch the amount was $125 million.

Level of Government: 
state
Action Type: 
agency action
Agency: 
Multistate Attorneys General Case
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
North Carolina
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
banking
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.