Will former Bank of America CEO Ken Lewis (Ken Lewis news), who left the bank in disgrace in the wake of allegations of impropriety around the bank's purchase of Merrill Lynch, ever be put on trial? It's still a possibility. The Attorney General of New York has not given up his cases against Lewis, former CFO Joe Price and the bank itself.

The AG is charging that executives misled shareholders about Merrill's deteriorating health and about large bonuses that would be given to Merrill workers. These issues subsequently exploded in the headlines, and many shareholders felt ripped off. Lewis was essentially forced to step down, as the bank was definitely in the regulatory crosshairs. The latest news is that Lewis has just responded formally to the New York AG suit in court, denying that he did anything wrong.

Bank of America settled a similar case related with the SEC this year. In that case, no individuals were charged. Recall that the lack of individual accountability really irked Judge Jed Rakoff. As of now, the parties are on track to a trial, though it has not yet been scheduled. We'll likely get some sort of settlement. Unless Lewis decides he has nothing to loss and seeks to defend his honor.

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