Bank of America (NYSE:BAC) 's board of directors agreed to disclose legal advice connected to its purchase of Merrill Lynch in January, which is clouded in controversy.

The bank earlier said discussions with its attorneys shielded the bank from legal challenges, as discussions between attorneys and clients are generally protected from exposure.

BOA agreed to switch its tactic after discussions with New York State Attorney General's Office, The New York Times reported Tuesday.

To break the stalemate, New York State threatened to charge individual executives with crimes, the Times said.

The Securities and Exchange Commission, New York State and Congress are all investigating the purchase of Merrill Lynch. Allegedly, Bank of America (NYSE:BAC) kept secret a deal to pay Merrill Lynch employees billions of dollars in bonus pay, escalating losses at Merrill Lynch and a $20 billion federal bailout from shareholders before they voted to approve the purchase.

The bank agreed to waive its attorney-client privilege as board members believe the bank has nothing to fear from the accusations, a source close to the bank said.

Caught in the controversy, Chief Executive Officer Kenneth Lewis said two weeks ago he would resign by the end of the year.