reports on the fallout. >> reporter: the civil fraud charges against bank of america and former ceo ken lewis stem from the bank's takeover of merrill lynch in 2008. >> certainly the merrill lynch acquisition, in particular, came with risk. >> reporter: lewis and the bank are accused of misleading investors by hiding massive losses at merrill lynch even as shareholders voted on the deal and manipulating the federal government into providing a $20 billion bailout to help deal with the losses. the complaint calls this an enormous fraud on taxpayers. and claims the bank and top management were motivated by greed, hub brings and a palable sense that the normal rules of fair play don't apply to them. legal experts called this a significant development. >> i think the american public wants accountability. this is the first time that anyone is seeking to hold responsible senior executives at a major bank. >> reporter: it came as the securities and exchange commission moved to set federal charges for concealing losses and bonuses. the bank agreed to pay a $150 million penalty to shareholders. this st

later on, ken lewis, the former ceo of bank of america, went to the government and said, we need help to get this done. and the attorney general is saying, well, that amounted to fraud. ali, we should also mention that bank of america is saying these charges are absolutely without merit, and let me read the statement from bank of america as well. "bank of america and its executives, including ken lewis and joe price, the former cfo, at all times acted in good faith and consistent with their legal and fiduciary obligation, in fact, the s.e.c. had access to this same evidence as the new york attorney general and concluded that there was no basis to enter either a charge of fraud or to charge individuals. the and these executives will vigorously defend ourselves." ali? >> they make an interesting point there. we've invited bank of america on to the show as well as the new york attorney general. let me just ask you about this. it gets confusing as to who is supposed to charge whom. now have the s.e.c. and you have the new york attorney general and then the fbi or the justice department. t

was the biggest drag on the dow, down 5% after new york's attorney general charged former chief ken lewis and joe price with fraud for allegedly misleading shareholders about the bank's merger with merrill lynch. >>> meanwhile, the dow's only advancer, sisco. despite impressive fourth quarter earnings, sisco only managed to eek out a gain of less than half a percent. >>> mastercard, however, didn't fair as well. while the credit card company posted a 23% jump in profit, shares plunged 10% due to cutbacks in credit card spending. >>> both the "new york times" and the wall street journal are reporting the industrial gas company air products is making an unsolicited offer of $5 billion in cash for its smaller rival air gas. >>> and finally, heinz is catching up with the times, tearing up the tiny tin foil packets and updated design. it has a cup like base perfect for dipping and squeezing and holds three times as much ketchup. nifty there. >> lebron james is at it again, and a coach axes himself. plus, here's yet another reason why they call him the great eight. your early morning sports hea

the merger was approved but former ceo ken lewis, that guy there, and ex-chief financial officer joe price allegedly tried to back out of the deal claiming the losses were now too high. the only way to make it work would be the government, taxpayers, gave them billions of dollars in bailout cash which is what happened. cuomo says it's an arrogant scheme hatched by executives. it's not a criminal case, which then raises the question, where's the justice in this? if no one is going to do criminal time if they're convicted? senior legal analyst jeffrey toobin joins me now. why isn't this a legal case? >> that's a good question. it's the broader question. think about the magnitude of this crisis. think about the damage that's been done. the amount of bailouts that have been given over the course. and not just to aig. to all the banks. >> also all the shady practices and kind of bets which, you know, are gambling with other people's money that precipitated it all. >> that precipitated it and the number of people who have gone to prison as a result of this entire scandal is zero. >> absolu

york's attorney general has filed civil fraud charges against bank of america and its former ceo ken lewis. the suit claims the bank misled investors about merrill lynch before it bought the wall street bank early last year. separately, bank of america agreed to pay $150 million to settle an sec claim that it misled shareholders about bonuses and losses while acquiring merrill. >>> and on the lighter side, americans are working overtime on their sex lives. according to a national survey by vault.com, 6 in 10 admit to in-dull mging in an office romance, nearly a third who got cozy with a colleague admit to kons matsing the affair while at work. and 6% of those people say they actually got caught in the act. can't say i'm part of that group, randall. >> well, you know, we learn the most interesting things from our "moneywatch" with you. thank you very much. >> yes, we do. thank you. >>> just ahead on the "morning news," newly sworn in senator scott brown gets down to business. >>> plus, jet setting giant pandas arrive in china this morning. >>> first, katie curry with a preview of tonight's

. >> it's ironic, but in effect, i think you talked about ken lewis having an appetite for meals or something like that, but if he had made this deal which does not look like necessary the greatest deal, he offered a 70% deal which the next it might have been at zero, but did he kind of save the system forest? >> i tell you, he was a confident, decisive ceo. there's no doubt that was very much a stabilizing, stabilizing action. >> do you think we would have gotten two tuesday on aig if there had been action on merrill that they? >> i don't know, know what would've happened. because i don't think, warren, i don't think we could have taken one of the big institution to fail, do you? >> no. >> the system is, i think the thing that is hard for people to understand is, you know, we have 10 institutions that had, 50 to 60 percent of the financial assets in this country and they are so interconnected. i think, in many ways, as bad as this is, and it's terrible, but we look at what could've happened. we were pretty fortunate. >> hank, the british had given you the kind of british like bail warning ab

ken lewis for misleading shareholders and the government about the merger with merrill lynch. an attorney for lewis called the charges without merit. >> tom: more trouble tonight for toyota. this time, with its popular prius hybrid. the u.s. transportation department is now investigating brake problems on the 2010 model. the issue, braking when driving over bumpy roads and potholes. the news comes after the recall of more than 2 million other toyotas for sticky gas pedals. as diane eastabrook reports, the prius problem is another dent for the auto giant. >> reporter: so far more than 100 prius owners in the u.s. have reported the brake problem. four drivers say their brakes may have caused accidents. i.h.s. global insight's rebecca lindland says a problem with prius could dent toyota's reputation even more. >> the prius name is almost a brand unto itself for toyota and for many consumers it's sort of a generic term for a hybrid vehicle, i kind of equate it to kleenax, what people call facial tissue. >> reporter: the prius problem couldn't come at a worse time for toyota. the c

former chief executive ken lewis didn't collect a salary, but the value of his pension jumped by more than $4 million. current c.e.o. brian moynihan earned $6.5 million. thomas montag, the president of b. of a's global banking and markets business, got nearly $30 million in salary and stock awards, thanks to an agreement he signed with merrill lynch. the figures were disclosed today in a filing with the s.e.c. the federal trade commission said "yes" today to pepsico bringing its two largest bottlers home to roost. the regulator signed off on the company's purchase of pepsi bottling group and pepsiamericas. but that o.k. comes with conditions. those bottlers also package products for dr. pepper and canada dry. so the f.t.c. wants pepsico to set up a firewall preventing its employees from seeing its rivals marketing and brand plans. >> tom: the winter swoon for stocks is over, so says tonight's "market monitor." she's elaine garzarelli, president of garzarelli capital. welcome back to nbr, elaine. nice see you. >> nice to see you, too. >> tom: what makes you think the dip in stock price

new york attorney general filing civil charges against bank of america and its former ceo, ken lewis,nk and lewis misled investors about the merrill lynch acquisition. b of a contends charges are without merit. the one stock hitting aa new 52-week low on the s&p 500. memc. members of the russell 1,000 mitting new 52-week highs, including this one, broadridge financial. dennis? >> you know, enough of the usual suspects. let's go after some of the overlooked names that are big movers today. matt nesto's finding out what is off the charts. what's off the charts? >> it's wacky today. i don't know if you saw, the stock's up 30%, best single-day move in six months and this, after this company did what it wasn't supposed to do, made money. imagine that. four cents a share versus a dime loss estimate overnight. they also said they're profitable this year in 2010. they make life science tools for genome research, dna research, based in santa clara, 1,000 employees and $500 million market cap. also worth a peek today, look at the weakness, the downtrend in wilmington trust. this is the bank tha

charges were filed against ken lewis and joe price.lawsuit says the bank fudged some numbers over its merger with merrill lynch including understated merrill's steep losses to win shareholder backing for the deal. this is late 2008. the bank got $20 billion in federal money to help it absorb merrill's losses. a spokesperson for b of a calls the claims totally without merit. >>> should churches be held to the same as any other entity? what the pope has to say and your views on the issue. >>> pope benedict xvi is urging british catholic to speak out against a proposed anti-discrimination law in that homeland. he claims the proposed equality bill will leave the church open to criminal charges if it rejects gay candidates to the priesthood or refuses to hire gay employees. the house of lords has added an exemption for priests and ministers. the catholic church and church of england would require them to hire gay employees or face punishment. we are ask the question should the catholic church face prosecution in the uk over gay discriminati

>> the bank and ceo ken lewis will vigorously fight fraud charges brought by the office today.gement team, including lewis, underreported merrill's losses and billions in employee bonuses to close the deal. >>> president obama african-american wiaunt will ha to wait for her asylum hearing. she's been living in the united states since 1978 when her original hearing was denied. both are expected to release written briefs within 90 days. obama says he will let the law play out. >>> thousands of pakistanis took to the streets today shouting anti-american slogans and burning the american flag. they were protesting convictions yesterday in new york from a pakistani woman for trying to kill americans while she was in u.s. custody in afghanistan. she is accused of shooting at american interrogators after her arrest in 2008. many pakistanis say the u.s. fabricated the charges. the united states is denying it. wolf? >> all right, lisa. stand by. thank you. >>> he was sworn in only two hours ago, but the republican senator from massachusetts -- yes, a republican senator from massachusetts

. >>> meantime new york attorney general andrew cuomo is suing bank of america and former ceo ken lewis over the merger with merrill lynch. >> cuomo alleges the bank, its former ceo and cfo joe price duped shareholders into supporting the $50 billion acquisition of merrill back in 2008. all three parties face civil fraud charges under new york state's martin act, cuomo alleging fraud was committed when they weren't told of the massive losses before the vote on the merger and when the parties said they'd walk away from the deal if uncle sam didn't provide billions of aids. lawyers for mr. price and mr. lewis say there's no basis for the case. he's being unfairly vilified for accountability for the meltdown. he stepped down at ceo of the bank last year. people close to him says he has no intent to settle this case. cuomo's charges made public just about ten minutes after the sec said it's seeking court approval for a settlement with bank of america. having had a $33 million settlement rejected last year, the sec is seeking approval of a $150 settlement over proxy violations including the

could have done, we did our best and it turned out there were things that were unforeseen to us and ken lewisnd bank of america went to go with merle, the british regulator dropped barclay so all of a sudden the south korea dealidn' work out so there you are. >> rose: i wouldn't say... that's true but i wouldn't say they're unforeseen to us. i was worried that maybe none of them would work out. i was hoping they would but we were trying hard but we didn't... if we could have had the authority and got the authority, thought to get from dong buy liquid assets or get tarp earlier or get the winddown authorities, we would have. but my belief is that it is virtually impossible to get anything that's big and difficult from congress unless there's an immediate crisis. and if we'd gone up with lehman and said "there's an immediate cry" we would have precipitated it. >> rose: could it have been and should it have been a better deal, the rescue of a.i.g.? and did investment banks here-- including goldman sachs and others, or banks, and in europe-- get benefits that they should not have in retro senator

. >> and so why not -- if ken lewis can be charged civilly, is it easier to bring a civil charge?s. the burden of proof is only a preponderance of the evidence. it's not proof beyond a reasonable doubt. so far the government is is not able to establish that this sipt just a bad luck mistake, everybody is trying to do their best but not fraud. that's the defense so far, and so far it's worked. >> what would be the potential penalty? civil is just a monetary fund. >> there are a lot of people doing a lot of time in prison for white collar crimes. the pemnalties are way up. the head of worldcom is doing more than 20 years. michael milken went to prison. >> a civil fine is just money. >> remember, bank of america is paying his legal fees, bank of america paid $150 million today to the s.e.c. to settle. >> taxpayer money is funding his legal fees, basically. >> the taxpayers are funding it indirectly, and the shareholders who in many respects are the victims of this are sub ssidizi. the money is churning, but the individuals involved have not paid any price at all other than public hum

attorney general andrew cuomo today filing civil fraud charges against bank of america, its former ceo ken lewis, and other executives saying the bank purposely misled investors about more than $15 billion in losses at merrill lynch not to mention huge bonuses in order to complete its purchase of that firm in late 2008. that wall street might still need reform in the wake of the near collapse of the u.s. economy, republicans now actively seeking donations from wall street by making the case they would be antireform. "the wall street journal" reporting that house minority leader boehner has been courting jp morgan chase, chief executive james dimon until now a big democratic contributor telling him congressional republicans have stood up to the president's effort to curb pay and impose new regulations and expressing his disappointment that so many on wall street continue to donate their money to democrats. house democrats today countering mr. boehner's claims, congressman waxman chairman of the energy and commerce committee telling huffington post he could think of two specific examples why wall

the state of new york has filed civil fraud charges against bank of america and its former c.e.o., ken lewis. they're accused of failing to disclose losses at merrill lynch before buying the failing bank in 2009. bank of america received an extra $20 billion from the government to offset the losses. it has since repaid the money. for the record, bank of america is a newshour funder. in afghanistan, a suicide car bomber killed at least six people in kandahar. the attack came as the overall u.s. commander upgraded his assessment of things. general stanley mcchrystal said: "i believe the situation in afghanistan is serious. i do not say now that i think it is deteriorating." last summer, mcchrystal painted a darker picture. today, he said, "i feel the field of brain research focused today on what could be breakthrough findings in britain and belgium. brain scans found some patients in persistent vegetative states, p.v.s., show signs of brain activity, after all. in some cases, they even visualized answers to simple questions. we have a report from julian rush of independent television news. >>

months, new york's attorney general was filing fraud charges against bank of america former ceo ken lewistigative correspondent lisa myers reports. >> reporter: the charges stem from the takeover of merle listen in 2008. >> it came with risk. >> reporter: lewis and the bank are accused of misleading investors by hiding massive losses at merrill lynch. and in manipulating the federal government to providing a $20 billion bailout to help deal with the losses. the complaint calls this an enormous fraud on taxpayers and claim the bank and top management were motivated by greed, hubris and a palpable sense that the normal rules of fair play don't apply to them. this is a significant development. >> i think the american public wants accountability this is the first time that anyone is seeking to hold responsible senior executives at a major bank. >> reporter: it came as the securities and exchange commission moved to settle charges against bank of america for concealing losses and bonuses. they agreed to pay a $150 million penalty to shareholders. this must be approved by a judge. the tougher f

bank of america says that the bank and former ceo ken lewis will vigorously fight fraud charges brought by the new york attorney general's office today. the lawsuit centers around the bank's purchase of merrill lynch at the height of the nation's financial meltdown. the suit says that bank of america's management team, including lewis, underreported merrill's losses, and billions in employees' bonuses to close that deal. thousands of pakistanis took to the street today shouting anti-american slogans and burning the u.s. flag. they were protesting yesterday's conviction in new york of a pakistani woman for trying to kill americans while she was in u.s. custody in afghanistan. the 37-year-old sl accused of shooting at merng intear yoit ga interrogato interrogators. >>> i want to go back to the ceremonial swearing in the vice president is new having. let's listen in. >> you will well and faithfully discharge your duties of the office on which you are about to enter so help you god. >> i do. >> again, congratulations. i hope you enjoy it as much as i do. >> i hope to do just gas as. >> did

york attorney general's office is filing civil charges against bank of america and its former ceo, ken lewis. it's saying the bank misled investors about merrill lynch when it acquired the bank in late 2008. in your middle box be, supreme court justice clarence thomas is defending the campaign ruling telling law students in florida that corporations and unions have a first amendment right to spend money on political candidates. and on the bottom, nasa is counting down to sunday's launch of the spate shuttle endeavor set to deliver a new room to the international space station. jon: just a few hours from now scott brown is to be officially sworn in as massachusetts' new junior senator. he was set to take office later this month, but republicans requested the process be sped up so that he can be on capitol hill for some upcoming votes. so how will scott brown's early arrival in the senate affect the democrats' agenda? let's talk about it with the blitz call editor of the washington examiner. chris, we know what happened to the president's health care agenda when scott brown was elected, what e

legal action, we're told against bank of america, including bringing charges against former ceo, ken lewisged the ex-bank of america ceo kennel liken lewis with fraud. his office has been pursuing an investigation into this merger and the subsequent bonuses paid to former merrill lynch employees and i just want to read this quick quote here. it says that bank of america, through its top management, engaged in a concerted effort to deceive shareholders and american taxpayers at large. andrew cuomo, the new york attorney general said that in a statement. we'll continue to update this story on cnn. stay tuned. >>> yeah, we like to call this our "random moment of the day," but tiger woods is probably teed off about our "random moment of the day." today a canadian company is selling a set of golf balls called the mistress collection. a dozen golf balls, each featuring a woman who allegedly had an affair with tiger woods. one of the women known in the porn industry as joslyn jamens, well, she may sue. >> as a victim of violence myself, it bothered me to think that someone would be standing with

lewis luck, u.s. response coordinator. i'm very happy to be here today with my colleague, lieutenant general ken keene. it's fitting that we sit at this table together because we do this every day at various times a day on our joint effort here. i think it's symbolic that we are working very, very closely together, one of the most positive experiences i think that we have had certainly as the lead agency, usaid working on behalf of all of the representatives of the u.s. government. the cooperation of the military has been absolutely extraordinary and we're very, very grateful for that. this catastrophe that we're responding to is in the hellatively early stages. we have gone from an emergency response into the subsequent phases of a transition to relieve. we early on in this response, we,Ñi of course, concentrated o the immediate provision of essential services and food, water, medical services and so forth and we have seen, fortunately, we have been able to meet some of those immediate needs with all of our international partners, united nations and a lot of help across the board transitioning into ot