Former BofA (BAC) CEO Ken Lewis Won't Settle Charges With NY AG Cuomo

According to a report from FOX Business News' Charles Gasparino, former CEO of Bank of America Corp. (NYSE: BAC) Kenneth Lewis said that he does not want to settle with New York Attorney General's Andrew Cuomo which brought civil charges against him.

The civil charges are stemming from allegations that Lewis failed to properly alert the bank’s shareholders about upcoming losses before the purchase of Merrill Lynch at the height of the economic meltdown. Lewis is accused of not informing the shareholders about some of the losses that Merrill had before the approval for the purchase was given.

The purchase of Merrill came at the same time Lehman Brothers Holdings went into bankruptcy and set off the most turbulent time of the financial crisis, and the government bailout of Wall Street.

The government was force to infuse billions into the combined firm after Merrill reported a $15 billion loss in December 2008 following the purchase by Bank of America.

Attorneys for Lewis have said that their client made his decision to not disclose the losses and acted in "good faith" during the negotiations to acquire Merrill. Lewis added that he was told not to disclose the details by public officials, including Fed Chairman Ben Bernanke and former Treasury Secretary Hank Paulson.

Gasparino stated that he has learned that Bernanke and Paulson may be called as witnesses if the case does go to trial.

Lewis’ attorneys are seeking to get the case dismissed and no court date has been set.

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