Would You Trust Bank of America?

While seeking stockholder approval for the deal to acquire Merrill Lynch, Bank of America told its shareholders that Merrill would not pay year-end bonuses to its executives. But the bank had actually already reached a deal with Merrill Lynch that allowed it to pay $5.8 billion dollars in bonuses. This type of information must be disclosed under financial regulations but was not.

The Securities and Exchange Commission found that the stockholders of BoA were intentionally misled (lied to) when they were told that no bonuses would be paid to the Merrill executives. Bank of America agreed to pay US regulators a 33-million-dollar fine for misleading its investors about billions of dollars in bonuses.

If BoA lies to it’s own owners (shareholders) of the Bank, what type of treatment would its customers expect to receive? This is another example of why you should not seek objective financial advise from a bank but rather should look for the protection of the fiduciary standards of a Registered Investment Advisor.

About the author

Michael Chamberlain, CFP®

Hello. My name is Michael Chamberlain CFP®, the principal of Chamberlain Financial Planning and Wealth Management. Our firm is “fee-only” with offices in Sacramento, Campbell and Santa Cruz California. “Serving clients from the mountains to the sea.”

Our mission is to help clients realize their full potential today while planning for an abundant tomorrow through comprehensive financial planning and collaborative decision-making.

As an experienced investment and planning professional, I have had the privilege of being interviewed by and contributing to hundreds of articles in such publications as Money Magazine, Financial Planning Magazine, ABC.com, Forbes.com, Nerdwallet, NASDAQ.com, Yahoo Finance and more.

I hope that you spend some time at the FiGuide site and learn more about the financial matters important to you. To learn more about our firm, visit our website www.chamberlainfp.com or give us a call at 800-347-1340.

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