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CFO Sink Calls For AG, Pension Fund to Take Action Following Bank of America Suit

2/5/2010

CONTACT: Kyra Jennings or Kevin Cate, (850) 413-2842
 
Tallahassee – Florida CFO Alex Sink today applauded the New York Attorney General for his recent fraud suit against Bank of America and top Bank of America executives, and requested that Attorney General McCollum determine whether Florida can take action on behalf of all of our citizens who suffered losses as a result of this alleged fraud.  CFO Sink also reiterated her call that the State Board of Administration pursue an aggressive action plan for lawsuits against Bank of America and other financial institutions if they have misled Florida’s pension fund.
 
“I applaud Attorney General Cuomo for his aggressive actions on behalf of New Yorkers, and it begs the question whether Florida can pursue similar legal action on behalf of our taxpayers and consumers,” CFO Sink wrote.  “If former top executives at Bank of America committed the fraud outlined in Attorney General Cuomo’s suit, those executives must be held accountable not only to the people of New York, but also to the people of Florida.”
 
A copy of CFO Sink’s letter is attached and copied below:
 
February 5, 2010
 
Dear Governor Crist, General McCollum and Director Williams:
 
Yesterday, New York Attorney General Andrew Cuomo filed suit against Bank of America and two former top executives on the grounds that Bank of America's management perpetrated an enormous fraud on its shareholders and taxpayers by failing to disclose losses that were mounting at Merrill Lynch.   Attorney General Cuomo’s lawsuit asserts that Bank of America’s shareholders were kept in the dark about this critical information relating to Bank of America’s acquisition of Merrill. 
 
I applaud Attorney General Cuomo for his aggressive actions on behalf of New Yorkers, and it begs the question whether Florida can pursue similar legal action on behalf of our taxpayers and consumers.
 
As you know, Florida’s pension fund suffered significant losses with the deterioration of Bank of America’s financial condition.  I am deeply concerned that Floridians may have been harmed by Bank of America’s conduct.  If former top executives at Bank of America committed the fraud outlined in Attorney General Cuomo’s suit, those executives must be held accountable not only to the people of New York, but also to the people of Florida.
 
I reiterate my request to Director Williams that the State Board of Administration task our newly hired securities litigation counsel to develop an aggressive action plan for litigation against Bank of America and other financial institutions if they have misled Florida’s pension fund.
 
Attorney General McCollum, as our state’s chief legal officer, I also ask that you immediately review Attorney General Cuomo’s suit and determine whether there can be broader recourse for all of Florida’s citizens who suffered losses as a result of this alleged fraud by Bank of America.
 
Sincerely,
 
 
Alex Sink