BofA’s tiny SEC fine
File under “failed incentives”: Bank of America lied about $3.6 billion in Merrill Lynch bonuses, and as a result will pay $33 million in fines to the SEC. That’s less than 0.92% of the bonuses in question.
If I were Citigroup, and the Feds were telling me not to pay Andrew Hall his $100 million bonus, I’d be inclined to just pay it anyway. And then sheepishly apologize and pay a $920,000 fine. So much easier than doing the right thing from the beginning.