Merrill Lynch To Reimburse Springfield, MA
|February 4, 2008|
Springfield Mayor Domenic J. Sarno, Springfield Finance Control Board Chairman Chris Gabrieli and Attorney General Martha Coakley announced this evening that Merrill Lynch is crediting the City of Springfield with approximately $13.9 million in cash, the full original purchase price of CDO investments that have been under dispute. In addition, Merrill Lynch has agreed to pay the legal fees incurred by the Finance Control Board in retaining outside counsel.
Mayor Domenic Sarno commented, "My focus all along has been to recoup these funds for the taxpayers of Springfield. In my view, Merrill Lynch has now done the right thing. We are very grateful to the Attorney General."
Finance Control Board Chairman Chris Gabrieli added, "Working together, we have achieved our central goal of full restitution. This has been a trying experience, and I thank the Attorney General, Bureau Chief Jeffrey Clements and Insurance & Financial Services Division Chief Glenn Kaplan for their speed and results on behalf of Springfield and the Commonwealth."
Attorney General Martha Coakley commented, "In mid-December, with full cooperation from the City of Springfield and the Springfield Finance Control Board, our Office commenced a review into the financial losses incurred on investments of surplus City of Springfield monies with the investment firm Merrill Lynch. The focus of our investigation was on determining whether funds could be recovered for the City of Springfield and its taxpayers. We appreciate that Merrill Lynch today has announced that it will be providing the City of Springfield with full reimbursement of all invested monies. We will continue to review this matter to determine if additional action by our Office is necessary."
Source: MA Attorney General Office