The renowned US lender Bank of America Corp (NYSE:BAC) Merrill Lynch is being sued by one of its private equity executives, Matthew Turner after he claimed that the lender pledged him bonuses of 14 million US dollars however not paid as promised.
In the lawsuit the complainant claimed that Merrill Lynch International subsidiary breached the contract terms. The lawsuit was filed in December in London. Turner served at the bank as the head for private equity for the Middle East, Europe and Africa. He left the bank in June 2011.
The bonuses include proceeds from profits of Merrill Lynch fund and some of the portion of the sales deals by the bank including sale of Foxtons loans.
The lawyer of Matthew Turner did not immediately respond for the initial comments on the issue. Bank of America also declined to comment.
According to recent media reports Goldman Sachs cut the stock rating for Deutsche Bank from hold to sell signaling the lowest level for 2013. The bank said that under new capital rules it may have to transfer 13 million US dollars to its United States unit.
In Frankfurt trading the stock of Deutsche bank dropped almost 4.4 % to close at 33.54 Euros. According to Goldman statement the current tougher requirements may prompt the bank to ask shareholders for more money and may hurt the asset profile of the European biggest bank.
In November the Federal Reserve ordered nearly 23 foreign lenders to comply with more strict capital regulations to reduce risks to the financial system.
Deutsche Bank has reduced the gap with rivals by building reserves without diluting the holdings of its owners with a share sale. Deutsche Bank is the least capitalized of Europe’s four biggest investment banks.