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Despite denials, Feds knew of Merrill bonuses
The Washington Times ^ | 12 Oct 2009 | Sean Lengell

Posted on 10/13/2009 10:19:35 AM PDT by BGHater

Dispute of Paulson, Bernanke testimony

Court documents show that federal regulators were told about billions of dollars in bonuses awarded to Merrill Lynch executives during the company's takeover by Bank of America - contradicting statements to Congress by Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson Jr.

The Securities Exchange Commission (SEC), in a brief filed in ongoing litigation with Bank of America Corp., said the bank informed the Treasury Department and the Federal Reserve of the Merrill Lynch bonuses as early as Dec. 17 - weeks before the government approved a $20 billion bailout to help the takeover.

The document disputes oral and written testimony to Congress from Mr. Bernanke and Mr. Paulson, who both said they knew nothing about the $3.6 billion in bonuses before the bailout was approved in January.

Mr. Paulson, while under oath during a House Oversight and Government Reform Committee hearing July 16, was asked directly by Rep. Elijah E. Cummings, Maryland Democrat, whether he was "aware of the Merrill Lynch 3-plus billion dollars' worth of bonuses they were about to give out when this deal came down." His response: "No, I wasn't."

Mr. Bernanke, in a letter to the committee earlier this year, also suggested that the Federal Reserve didn't know about the bonuses before the bailout.

"Beginning on December 17, 2008, we participated in several discussions with management of Bank of America about its plans to acquire Merrill Lynch," Mr. Bernanke wrote. "The discussion did not encompass compensation levels or bonuses of Merrill Lynch employees."

The committee's top Republican, Rep. Darrell Issa of California, is demanding an explanation from Mr. Bernanke and Mr. Paulson.

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


TOPICS: Business/Economy; Crime/Corruption; Government
KEYWORDS: bernanke; economy; fed; federalreserve; merrill; paulson; treasury

1 posted on 10/13/2009 10:19:36 AM PDT by BGHater
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To: BGHater

They lied, as all liberals do.


2 posted on 10/13/2009 10:26:32 AM PDT by Leftism is Mentally Deranged
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To: BGHater

Well, this is easy. Since they are both Demoncrats, they simply “misspoke!” Solved it!


3 posted on 10/13/2009 10:27:11 AM PDT by ExTxMarine (Hey Congress: Go Conservative or Go Home!)
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To: ExTxMarine

Sounds like perjury to me!


4 posted on 10/13/2009 11:01:37 AM PDT by cpdiii (roughneck, oilfield trash and proud of it, geologist, pilot, pharmacist, iconoclast.)
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To: cpdiii

[Sounds like perjury to me!]

I have come to realize that my perfect hearing is not a defense against “misspoke,” so perjury can’t really even be mentioned.

Sorry, you are WAY off base here! /sarc


5 posted on 10/13/2009 11:09:51 AM PDT by ExTxMarine (Hey Congress: Go Conservative or Go Home!)
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To: BGHater

A flunky will take the wrap as a quid pro quo for the puppet masters.


6 posted on 10/13/2009 11:30:58 AM PDT by Ministryof funnywalks (post hoc ergo propter hoc)
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To: Leftism is Mentally Deranged

And they act shocked that we don’t trust the government!


7 posted on 10/13/2009 1:47:14 PM PDT by Freddd (CNN is not credible.)
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