Judge puts the brakes on exec bonuses deal between BofA and feds

Bank of America (BA) may have thought it put the thorny issue of bonuses paid to Merrill Lynch executives behind them, but a federal court judge Monday rejected an agreement the bank reached with federal officials over the matter and has ordered a trial.

U.S. District Court Judge Jed Rakoff's decision voids last month's $33-million deal between the Securities and Exchange Commission and BofA, which announced its acquisition of Merrill Lynch in September 2008. The parties must now prepare for trial, scheduled to begin Feb. 1, he said in his ruling.