BofA-SEC bonus settlement rejected

NEW YORK: A federal judge on Monday rejected Bank of America Corp's and the US Securities and Exchange Commission's $33 million settlement over

Top 20 Global Financial Brands 2009 19 Indian banks/financial institutions in Top 500 Global Financial Brands 2009

Merrill Lynch & Co bonuses as a contrivance that deprives shareholders of the truth.

In rejecting the settlement for a third time, saying it "cannot remotely be called fair," US District Judge Jed Rakoff ordered the SEC and the largest US bank to prepare for a trial by next February 1.

He said he had a "distinct impression" that the settlement was "a contrivance designed to provide the SEC with the facade of enforcement and the management of the bank with a quick resolution of an embarrassing inquiry - all at the expense of the sole alleged victims, the shareholders."

Rakoff's decision comes as the Charlotte, North Carolina-based bank and its Chief Executive Kenneth Lewis face a deadline by the end of Monday from New York Attorney General Andrew Cuomo to provide more details about Bank of America's purchase of Merrill.

The attorney general is preparing charges against some of the bank's executives, including perhaps "some of the very highest-ranking," according to a person familiar with Cuomo's probe, who requested anonymity because the probe is ongoing.