A federal judge, Jed Rakoff, rejected a proposed $33 million settlement between Bank of America Corp. (NYSE: BAC) and the Securities and Exchange Commission over bonuses paid to Merrill Lynch executives, according to media reports Monday. The allegations were based on claims that Bank of America did not tell investors about an agreement to pay Merrill executives billions of dollars in bonuses before the bank bought the troubled investment firm, according to reports. –Marketwatch

One year after Wall Street teetered on the brink of collapse, seven out of 10 Americans lack confidence the federal government has taken safeguards to prevent another financial industry meltdown, according to a new AP-GfK poll. 80 percent rate the condition of the economy as poor, and majorities worry about their own ability to make ends meet. -Associated Press

Drugmaker Eli Lilly & Co. (NYSE: LLY) said today that it will eliminate 5,500 jobs over two years and reorganize into five business units in an effort to cut costs and bring new drugs to market more quickly as best-sellers go off-patent. The company said it will reduce its work force by nearly 14 percent, to 35,000 from the current 40,500, by the end of 2011. This new total excludes hirings in high-growth emerging markets and Japan. Lilly hopes to cut annual costs by $1 billion per year over the same time.
-AOL Money & Finance

Germany sold $4 billion of bonds in its first dollar-denominated offering since 2005, according to a person familiar with the transaction. The three-year issue broadens the nation’s sources of funding at a time when it’s seeking to raise a record amount of debt. The notes priced to yield 25 basis points below the benchmark mid-swap rate, according to another person familiar with the transaction who declined to be identified. -Bloomberg

President Obama marked the one-year anniversary of the Lehman collapse by pushing for an overhaul of U.S. financial regulations. Michael Farr, president of Farr, Miller & Washington reacts by saying, “Typical government reaction to any problem = more legislation and regulation. This is the wrong answer.” On the other hand, Jeffrey Kleintop, chief market strategist for LPL Financial said, “Over the next six months, Congress will likely enact major changes in regulation of the financial markets, derivatives and credit default swaps, hedge funds, the mortgage markets, and establish a council of regulators to oversee systemic risk. -The Wall Street Journal

-Jutia Group