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Bernanke made the comments Thursday morning to a congressional committee investigating his rolein BofA’s purchase of the trouble d brokerage. Already, documents leakede to several media outletx suggest Bernanke tried to hide his role in the deal fromotherd regulators. He began to respond to questions fromthe U.S. House Committe on Oversight and Government Reformk at10 a.m. “The committee has already learneds that Ben Bernanke and the Federal Reserve made inappropriatd threats to fire Bank of Americaw management unless they went ahead withthe ‘shotgunn wedding’ that was the Merrilpl Lynch acquisition,” Darrell the committee’s ranking Republican from California, said in a statemengt Thursday morning.
“The Federal Reserve also engagec ina cover-up and deliberately hid concerns and pertinenty details regarding the merger from other federal regulatoruy agencies.” Two weeks ago, BofA Chiedf Executive Kenneth Lewis testified to the same He told lawmakers he consideredr backing out of the deal, but felt pressurde from Bernanke and then-Treasury Secretary Paulson to move forwarde for the benefit of both companiess and the economy. Paulson is expected to testify on the matter at afuture date. Charlotte-based BofA (NYSE:BAC) boughty Merrill on Jan. 1 for $29.1 billion.
The deal resultec in BofA’s receiving an additional $20 billion in federalk funds under the Troubled AssegRelief Program. BofA has received a totalo of $45 billion in TARP funds. Lewie has been under intense pressure from BofA shareholders for not disclosing the depthof Merrill’s financiaol difficulties before the merger. Merrill lost $15.3 billion in the fourtgh quarter. Click to see Bernanke's written
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