Former Merrill Lynch CEO John Thain originally refused to answer detailed questions posed by New York State Attorney General Andrew Cuomo about those $3.6bn in bonuses he paid to firm employees for their work in 2008 ( a year when Merrill racked up losses of over $27bn). He said that he had a confidentiality agreement in place with Bank of America which prohibited him from doing so. A New York state judge was having none of that, however, and Thain was ordered to spill the beans. He did so Tuesday, when he answered questions posed by Cuomo's office over a two-and-a-half hour period.

And Cuomo appears to be intent on making details of the bonus payments made to certain individuals public (almost 700 Merrill staffers are said to have bagged over $1m in bonuses last year), presumably in an attempt to 'name and shame' those concerned. Bank of America, however, plans to gag Cuomo and is said to be preparing to go to court in an effort to stop these details entering the public domain. A BofA spokesperson said that the details 'should remain private to protect the rights of the individuals and the competitive position of the company'. Cuomo is expected to prepare counter-arguments.

In the meantime, fears persist that, given BofA's relationship with the US government, the firm may have problems maintaining a leading investment banking franchise. Reuters quotes George Ball, Chairman of Sanders Morris Harris Group, who has said: 'Since Bank of America is an at least partly nationalized entity, the risks and the capital required to operate a gigantic bulge-bracket bank may be viewed with disfavour by the largest stockholder - now Uncle Sam'.

Finally, the Financial Times reports that the exodus at senior management level in Merrill's European operation continues. Ian Carlton, co-head of the region's global markets, financing and services unit, is now leaving. Carlton, a 17-year Merrill veteran, joins European chairman Bob Wigley, regional head of equities Brent Clapacs and several other senior executives who have headed for the exits in recent weeks.

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