U.S. District Judge Jed S. Rakoff refused to sign off on a consent decree between the Securities and Exchange Commission and Bank of America Corp., saying that blessing the deal without a hearing would leave the public in the dark regarding a key aspect of the Wall Street bailout.

Instead, Judge Rakoff set a hearing for Monday over the charges, in which the SEC alleged that the bank misled shareholders about billions of dollars in bonuses promised to Merrill Lynch & Co. employees when the bank bought Merrill at the height of the financial crisis last year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.