Bank of America announced its plan to merge with Merrill Lynch in 2008, admitting that there would be a small loss in the beginning. As the deal was closer to becoming official, 
Merrill Lynch was taking major profit hits as high as $7.5 billion in one month. After internal emails were disclosed, it revealed that Bank of America executives knew of these outrageous profit losses and downplayed them to its shareholders. At one point, Bank of America ordered Merrill Lynch to sell off assets to compensate for the profit losses, knowing that this would decrease the value to its shareholders.
Four days later, shareholders met and approved the merger. At the meeting, the CEO at the time, Kenneth Lewis knowingly made inaccurate statements to persuade the shareholders to approve the merger with Merrill Lynch. Just days after the approval, Bank of America’s attorneys prepared documents to back out of the merger due to “new financial woes.” After shareholders learned of the financial crises going on at Merrill Lynch, stock in Bank of America dropped at excessive rates. The bank did not claim wrongdoing but settled with the SEC for $150 million.
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