Cuomo also wants to know what Bank of America Chief Executive Kenneth Lewis knew about the accelerated bonuses and about Merrill's surprise $15 billion net loss in the fourth quarter, the person told the agency.

The attorney general's office is looking at whether the companies' shareholders had all necessary information about Merrill's finances and whether federal bailout loans to Bank of America were used properly, the Bloomberg report said.

Cuomo is now looking at whether the handling of data on the losses and on Merrill's bonuses, paid in December instead of their usual date in January, may have violated New York securities laws and warrant the imposition of fines, the person told the agency.

Reuters could not immediately reach Bank of America and Cuomo's office for comment.

Cuomo is working with Neil Barofsky, the special inspector general of the federal government's $700 billion Troubled Asset Relief Program, to examine executive pay at lenders that get TARP capital. Bank of America got $25 billion last year and the additional $20 billion this month.

John Thain, former chief executive of Merrill, was ousted from Bank of America on January 22 after the bank discovered surprise losses at the brokerage, three weeks after the $19.4 billion merger closed.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Valerie Lee)