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Accountability Must Prevail
NetRight Nation ^ | June 24, 2009 | Rep. Patrick McHenry

Posted on 06/24/2009 11:59:25 AM PDT by NetRight Nation

When Bank of America, a financial institution with roots in Western North Carolina, acquired another financial giant, Merrill Lynch, our jobs and retirement accounts were decimated.

I can appreciate that the Treasury Department and Federal Reserve perceived Merrill's failure as a systemic risk to our economy but I have two primary concerns with the deal:

-- The merger did not quarantine the risk as the feds intended; it spread the risk. Bank of America's shareholders took ownership of the heavy losses and debts of Merrill Lynch. As a result, more taxpayer dollars were needed to stabilize Bank of America.

-- The government's conduct during the negotiations has been called into question. It is alleged that representatives from the Treasury Department and Federal Reserve bullied Bank of America into accepting their terms for the agreement. They supposedly did so by threatening to have bank officials fired.

These same individuals reportedly used similar threats to persuade Bank of America executives from revealing the true size and scope of Merrill Lynch's losses and debts prior to the acquisition.

E-mails obtained by a federal subpoena suggest that former Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, and current Treasury Secretary Timothy Geithner were directly involved in this matter.

(Excerpt) Read more at netrightnation.com ...


TOPICS: Business/Economy; Government; Miscellaneous
KEYWORDS: accountability; banks; fed; government

1 posted on 06/24/2009 11:59:25 AM PDT by NetRight Nation
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