In a written order, the judge asked for material related to the termination in December 2008 of the bank's then-general counsel, Timothy Mayopolous, and the "extent of participation" after November of that year by the bank's attorneys at Wachtell Lipton Rosen & Katz in evaluating the disclosure issues raised by reports of increased losses at Merrill Lynch prior to the merger approval date.
The judge also asked for information about anyone affiliated with the bank or its lawyers who recommended a pre-merger disclosure to the bank's shareholders about Merrill's post-September losses. He also wants to see material regarding anyone affiliated with the bank who recommended a pre-merger disclosure regarding decisions that had been reached by the bank to allow Merrill to distribute billions of dollars in year-end bonuses.
The judge gave the parties until Feb. 16 to submit the material, which includes deposition testimony, documents and emails.
The SEC said they couldn't find anything; Judge Rackoff says he'll try! $150 million? Not so fast!!