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BofA settlement frees former Merrill Lynch chief Robert McCann for UBS

By Bettina Padurano for CEOWORLD Magazine Updated:October 1, 2009

Bank of America Corp (BAC.N) and former Merrill Lynch & Co brokerage chief Robert McCann have resolved a dispute over his contract. Clearing the path for him to become the head of UBS’ wealth management operations in the Americas later this month.

McCann left Merrill Lynch after the investment bank was acquired by Bank of America on January 1. In a lawsuit in August, he accused the bank of blocking him from taking another job in financial services before January 2010. He contended he should have been free to go back to work in July.

He sought to lift a “non-competition” clause in his contract so he could take a job with a Bank of America rival. Published reports said the rival was Swiss bank UBS AG (UBSN.VX). UBS declined to comment on Thursday.

Representatives of Bank of America, the No. 1 U.S. bank, declined comment on the settlement.

McCann sued to push the bank into releasing him from exit terms. He alleged the bank fired him without cause after rejecting an offer to resign, part of “vengeful conduct intended to both punish and humiliate” him for trying to quit, according to papers filed in New York state court in Manhattan.

“McCann can go back to work in late October,” said his lawyer, Steven Eckhaus. “We think it was a good decision by both sides.”

UBS AG, Switzerland’s largest bank, has been negotiating with McCann to head the Americas wealth-management unit, people familiar with the matter have said.

McCann, 51, asked a New York state judge to lift the non- compete clause so he could take another job. The judge made no rulings at a hearing last month, saying the matter was a “close” decision. He urged McCann and Bank of America to resume settlement talks.

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