Skip to comments.U.S. threatened to oust BofA execs over Merrill deal
Posted on 10/20/2009 12:53:59 PM PDT by Jim Robinson
Government regulators threatened to remove top Bank of America executives in December if they didn't acquire Merrill Lynch, but also agreed to provide taxpayer funds to compensate for Merrill's poor performance, according to company records obtained by The Washington Times.
The documents -- e-mails between bank executives and their outside lawyers as well as board-meeting talking points prepared for then-Chief Executive Ken Lewis -- indicate that former Treasury Secretary Henry Mr. Paulson Jr. and Federal Reserve Board Chairman Ben S. Bernanke promised to give the bank taxpayer bailout funds to compensate them for Merrill's poor performance.
Summaries written by the executives of their conversations with Mr. Bernanke and Mr. Paulson also appear to show that Treasury Secretary Timothy F. Geithner vowed to honor the deal once he took office, contrary to congressional testimony given by Mr. Bernanke this summer in which he said Mr. Geithner was not involved in the discussions.
Bank of America's acquisition of Merrill Lynch -- and the government's role in the deal -- is the subject of a hearing Thursday before the House Committee on Oversight and Government Reform. Last week, the company decided to waive its attorney-client privilege and turned over some 1,000 documents to committee investigators ahead of the hearing.
In the documents, Bank of America executives repeatedly referenced threats from regulators that their top brass would be on the chopping block if they attempted to renegotiate their bid for Merrill by declaring what's known as a material adverse change (MAC), a clause in their acquisition agreement that would allow them to renegotiate the price of the transaction in light of Merrill's mounting losses.
"The Treasury and the Fed strongly stated that if we were to invoke the MAC clause and fail to close this transaction, they would remove the board and management...
(Excerpt) Read more at washingtontimes.com ...
For everyone complaining about Barak Obama’s high-handed interference in private businesses, it’s worth remembering it started with Paulson/Bush.
For everyone complaining about Barak Obamas high-handed interference in private businesses, its worth remembering it started with Goldman Sachs/government swinging doors...
anyone remember paulson wanted amnesty for anything he might do?
I do “blame Bush” for the debacle of Sep ‘08. But it is very telling that Zero kept the team that did it (Bernanke, Geither) largely intact.
The 7 conditions (Warning signs)
that foster & fuel fascism are:
I blame Bush and McCain for falling for this colossal fraud and ripoff of the taxpayer, but Paulson is the perpetrator.
Well if you are powerful enough to buy the Federal Government lock stock and barrel you are powerful enough to buy off both parties as well. If you want to look at where we really get screwed watch not where these parties fight but where they agree...
List of needed convictions for the Bankscam: xTreasury Secretary Henry Mr. Paulson Jr., Federal Reserve Board Chairman Ben S. Bernanke, all FR Presidents, Geitner, all top mgmt of BoA, JPM, Citi, Goldman, WF, US House/Senate members who voted yes. Clinton, Rubin, Obama!
dangit! You beat me with the witty response.
Rubin. Always suspected that guy’s into big time corruption. Wonder how much of this fraudulent financial crap can be traced back to him?
Ken Lewis may want to have someone start his car for him. He’s going to have some fun in retirement, beyond any non-disclosure agreements, writhing the book on this. And maybe he should consider a food taster.
Fascism or socialism?
“Corpate fascism” in this case refers to “national socialists” taking over the control of business through threatened control of the business ownership....
There is not a whisker of difference between the honchos at the Donkey Party and their counter-parts at the RINO party. It is all about maintaining their status at the yacht club or the other club at Yale.