CNBC’s Charlie Gasparino just reported that New York Attorney General Andrew Cuomo has subpoenaed former Merrill Lynch CEO John Thain for testimony about Merrill’s awarding of billions of dollars in bonuses in December.
Cuomo has been investigating the decision by Merrill to award the bonuses — and in particular, the allegation that they were made on an accelerated schedule, before Bank of America took control of the company January 1.
Gasparino added that Bank of America chief administrative officer J. Steele Alphin, who Thain has claimed was aware of the bonuses, has also been subpoenaed.
Gasparino suggested that Cuomo could ultimately bring charges of criminal fraud against those involved in the payouts, under the Martin Act.
This looks like it could get should get interesting…
Late Update: CNBC has now posted a written story.
And here’s Cuomo’s statement on the subpoenas.