Wednesday, June 24, 2009

Bernanke on the HOT seat!

I imagine this will garner a lot of attention - let the circus begin. reports the top Republican on the House Oversight and Government Reform Committee said on Wednesday that the Federal Reserve sought to hide its extensive involvement in Bank of America Corp's (BAC) acquisition of Merrill Lynch as Merrill's financial condition worsened. "The committee has already learned that Ben Bernanke and the Federal Reserve made inappropriate threats to fire Bank of America management unless they went ahead with the 'shotgun wedding' that was the Merrill Lynch acquisition... The Federal Reserve also engaged in a cover-up and deliberately hid concerns and pertinent details regarding the merger from other federal regulatory agencies," Representative Darrell Issa said in a statement released to Reuters. The committee has obtained a number of emails and documents from the Fed about its behind-the-scenes role in the merger, which was quickly brokered late in 2008, according to sources familiar with documents. The Fed, which was wrapping up a two-day meeting on Wednesday, had no immediate comment.

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