NEW York state's attorney general, Mr Andrew Cuomo, this week issued a subpoena to Bank of America, asking for details on how it allocates its bonuses, the Wall Street Journal said, citing a person familiar with the matter.

In a letter to BOA, Mr Cuomo's office said the company had responded inadequately to its informal request for information on executive compensation, the paper said.

Two weeks ago Mr Cuomo told BOA and eight other banks receiving government money under the Treasury's Troubled Asset Relief Programme (Tarp) that using the funds for bonus payments may be illegal under state law.

BOA wouldn't confirm with the Journal whether it received the subpoena but its spokesman told the paper that the company did respond to Mr Cuomo's initial letter and that 'Bank of America is not using Tarp money for executive compensation or bonuses'.

Mr Cuomo's office and Bank of America could not be immediately reached for comment on the report. -- REUTERS