SEC to apply its ‘enforcement responsibilities with vigor and vigilance’ to BofA

As the Financial Times reported, the U.S. Securities and Exchange Commission is reviewing if BofA broke federal securities law. That happened when it failed to disclose to shareholders Merrill Lynch's plan to pay $3.62 billion in bonuses before they voted for the merger of the banks.

However, Bank of America stated last week "we believe we made the appropriate and legal disclosures in the materials available to shareholders" before the meeting.

SEC Chairman Mary Schapiro in a letter to a Democratic congressman wrote that the regulator was "carefully reviewing the Bank of America disclosure" and had not yet expressed a view on whether the bonus plan should have been revealed.

Congressman Dennis Kucinich replied in a letter to SEC that there were "significant questions" around Bank of America's failure to disclose bonus details before shareholders voted.

Financial Times cited Schapiro's letter, saying “Where the SEC believes that there has been an omission of material facts necessary in order to make the statements not misleading, we will carry out our enforcement responsibilities with vigor and vigilance".