Said BofA in a statement:
We find it regrettable and are disappointed that the NYAG has chosen to file these charges, which we believe are totally without merit.
The Treasury Department, concerned that a Merrill collapse would have wider repercussions, reportedly pressured BofA to go ahead with the purchase, despite the qualms of Lewis and others.
Separately, BofA and the SEC came to a deal in which the bank will pay $150 million
to settle allegations that it misled investors about the Merrill purchase.