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CHARLOTTE (North Carolina) - A NEW York judge cleared the way Monday for former Merrill Lynch & Co CEO John Thain to testify about bonuses paid to Merrill employees before the company was sold to Bank of America Corp.
New York's Attorney General Andrew Cuomo filed a motion in the state's Supreme Court Monday asking that Mr Thain be compelled to provide details on the bonuses, which he had declined to give during a deposition on Thursday. Thain's attorney Andrew Levander later on Mondaysaid that the motion was granted and Mr Thain will answer the questions on Tuesday. Mr Levander said Mr Thain has been cooperating with the investigation. 'He's answered 97 per cent of the questions asked, and the only ones he didn't answer were at the request of Bank of America,' Mr Levander told the Associated Press. Mr Thain declined to give details about individual bonuses during the deposition on Thursday because he said he was instructed not to by Bank of America. Levander also said Mr Thain was worried BofA might sue him if he answered those questions. The court also ruled to keep Mr Thain's scheduled testimony Tuesday on the subject confidential until at least March 13 at the request of Bank of America, Levander said. The judge will hold a hearing then to determine if details about individual bonuses should remain confidential, he added. Bank of America spokesman Scott Silvestri said: 'We're pleased with the ruling, which is consistent with the company's position all along, that the information is private and should remain private to protect the rights of the individuals and the competitive position of the company.' Mr Cuomo has been investigating US$3.6 billion (S$5.5 billion) in bonuses Merrill Lynch executives received less than a month before the company completed its sale to Charlotte, North Carolina-based Bank of America, and whether investors were properly informed about Merrill's finances. The payments came as New York-based Merrill was on the brink of reporting a more than US$15 billion fourth-quarter loss and more than US$27 billion in losses for the full year. During his deposition on Thursday, Thain indicated Bank of America was deeply involved in paying out the Merrill bonuses. Earlier this month, Cuomo subpoenaed Bank of America's chairman and chief executive Ken Lewis, as he investigates the timing of the bonuses. Last month, Cuomo subpoenaed Thain and Bank of America's chief administrative officer, J. Steele Alphin. -- AP
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