Bank of America Corp (NYSE: BAC) has been ordered by a Financial Industry Regulatory Authority (FINRA) arbitration panel to pay former head of media investment banking Stephen Ketchum $5 million in damages.
Ketchum, who was laid-off from Bank of America Corp (NYSE: BAC) in November 2007, filed a claim with FINRA against Bank of America Corp (NYSE: BAC)’s former broker/dealer unit, Bank of America Corp (NYSE: BAC) Securities for breach of contract, violating New York State Labor law and unjust enrichment.
The former executive had sought $15 million from Bank of America Corp (NYSE: BAC) as well as punitive damages which were not specified, as well as other relief including a declaration that he can “use his discretion to invest the monies being held in his employee restoration plan account, which amount is approximately $900,000.”
Ketchum’s attorney, Jonathan Sack, said that Bank of America, “consistently failed to appreciate the risk associated with a high-quality banker who consistently generated revenue for the firm.”
Bank of America spokesman said to the press Bill Halldin, “There was a disagreement about the amounts owed to Mr. Ketchum and, in order to resolve the disagreement, the matter was submitted to arbitration and resolved.”
