SEC to 'vigorously pursue' charges against BofA

WASHINGTON (AP) - The Securities and Exchange Commission will continue to "vigorously pursue" its charges against Bank of America over disclosure of bonuses to employees of Merrill Lynch.

SEC Enforcement Director Robert Khuzami told a House panel examining the bank's acquisition of Merrill last December the agency will go to trial with its charges, after a judge threw out the SEC's proposed $33 million settlement with the bank.

Federal Deposit Insurance Corp. Chairman Sheila Bair says her agency took part in the rescue of Bank of America in January because its condition posed a threat to the financial system.

Bair says the FDIC's $2.5 billion risk guarantee was intended to reduce the threat to the system and the deposit insurance fund. This week Bank of America repaid the $45 billion bailout it received.