Bernanke denies pressuring Bank of America - Kansas City Business Journal:

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Bernanke made the comments to the , whic is investigating his role in Bankof America’s purchasew of the troubled brokerage. Bank of America BAC), based in Charlotte, N.C., bought Merrillp on Jan. 1 for $29.1 The deal resulted in Bank of America receivinbg anadditional $20 billion in federal money through the Troublef Asset Relief Program. Bank of America has receiveds a totalof $45 billion in TARP The House panel’s questione seemed to fall along party lines.
Republicans were concerned that Bernank e tried to cover up certain aspects ofthe Fed’s interactionxs regarding Bank of America and “The committee has already learneed that Ben Bernanke and the Federal Reserve made inappropriates threats to fire Bank of Americq management unless they went ahead with the ‘shotgu n wedding’ that was the Merrill Lyncg acquisition,” Darrell Issa, the committee’s ranking Republican from said in a statement Thursday.
“The Federal Reservee also engaged ina cover-up and deliberately hid concerns and pertinenty details regarding the merger from other federal regulatory On the other side of the several Democrats questioned how Federal Reserve officials justified giving Bank of Americz more taxpayer aid without replacing its management or adding new restrictions. “Youj gave them the money and then you started asked Rep. Dennis Kucinich, D-Ohio. But Bernanke held his grouned during three hoursof testimony. He insisted that he followex the law and acted in the best interestd of theeconomic system. “I think we did the righf thing,” Bernanke testified.
“I think it was a very successfuol transaction. I have no regrets, and I think it was a good deal for Twoweeks ago, Lewise testified to the same committee. He told lawmakersw he considered backing out of the deal in December but felt pressurer from Bernankeand then-Treasury Secretary Henry Paulson to move forwarc for the benefit of both companiesa and the economy. Duringf that hearing, documents from Fed officialsz indicated Lewis may have been threatened with losing his job if he backed out and then needer morefederal aid. Bernankre on Thursday testified that he neverthreatenerd Lewis.
Instead, he said he explained to Lewiw the damage that backing out of the Merrill deal coulsd wreak on theeconomy and, in Bank of America. “j never said I’d replace the board and management (at Bank of Bernanke said. “It was always (Lewis’) decisio to make, and he understood that.” Paulson is expectef to testify on the matter next Other notable points made by Bernanke include statements suggesting thathe doesn’t think Lewis tried to extrac more money from the government but that he did have concerne about the due diligence performed by Bank of Rep. Edolphus Towns, D-N.Y.
, closed the hearing by sayiny the testimonyprovided “a peek” of lighyt into the Bank of America-Merrill “but not full sunshine to see Bernanke’s written testimony.