Fed Reserve Docs Subpoenaed In Bank Probe

House Committee Eyeing Bailouts Looks Into Role Of Bernanke, Paulson In BofA's $20B Acquisition Of Merrill Lynch

(AP)  A House panel has subpoenaed documents that lawmakers say could shed new light on Federal Reserve Chairman Ben Bernanke's role in Bank of America's acquisition of Merrill Lynch.

The subpoena comes ahead of a hearing next week in which Bernanke is scheduled to testify.

Lawmakers have accused Bernanke and President Bush's treasury secretary, Hank Paulson, of pressuring Bank of America Corp. Chief Executive Kenneth Lewis into the deal and urging him to keep quiet about Merrill's financial problems.

Not divulging that information would have violated Lewis' fiduciary duty to the bank's shareholders.

Lawmakers also have questioned whether Lewis threatened not to go through with the merger in order to squeeze money from the government.

Bank of America ultimately received $45 billion from the government's bank bailout program, $20 billion of which was tied to its acquisition of Merrill Lynch.

The subpoena is the second of its kind by the House Oversight and Government Reform Committee.

Last week, chairman Rep. Ed Towns, a New York Democrat, and ranking Republican member Rep. Darrell Issa of California said the panel had reviewed documents that proved the merger was a "shotgun wedding" that came at the expense of the taxpayer.

"The question may be ... who was holding the shotgun?" Towns asked at a June 11 hearing.

In one e-mail reviewed by committee staff, Bernanke said he thought Lewis' threat to pull out of the deal was a "bargaining chip" and "we do not see it as a very likely scenario at all."

In testimony before the committee, Lewis said publicly for the first time that his job was threatened after he expressed second thoughts about the merger.

Lewis said then-Treasury Secretary Hank Paulson and federal regulators made clear that if the bank reneged on its promise they would force his ouster and that of board members at the bank.

[sjc_1]

PBS Frontline did a great story on this. Lewis plays both sides as an act, he is a phony from the get go.

http://www.pbs.org/wgbh/pages/frontline/story/2009/06/bank-of-america-merrill-merger.html

[cbsblogger]

There is so much going on with the Goldman Sachs controlled US Treasury and Federal Reserve that is undercover and behind the scenes.....yet we citizens are all on the line for it that it needs exposed to the light of day. But don't depend on our US media as they protect their own not the USA.

Has anyone heard much about the recent episode in Italy where two Japanese were trying to smuggle 130+ BILLION of US Treasury bearer bonds into Switzerland on the black market? No one held responsible. No one identified. No one arrested. CNBC covered it up, as did other major media. The US media has a blackout on this strange story...why?

[whitemale08]

I had to listen to the Alex Jones Show to hear about it.

Just goes to show yout that CBS News, ABC, FOX and others wants you to focus on Paris Hilton walking around like trash and worry about Jon-Benet Ramsey.

We have outright mafia, criminal stealing and looting going on by Goldman Sucks and JP Morgan and all the media wants to talk about is fluffy krap like ugly celebrities with piles of make-up on like Lindsey Lohan.

IT'S PATHETIC!

[kiddoat44]

Ya know...If the government had been smart they would have given every LEGAL American citizen $100,000,000.00 and none of this trouble would have happened. We could have paid the taxes on the million, paid outstanding debts (ie..mortgages), and still been able to feed our families. As it stands the good old boy system is still in good standing. Why should OUR government care about US the taxpayers when all they really care about is themselves. I for one would like to know when there are only a few tax payers left (Bankers), who is going to pay for their FREE trips to where they feel like going next. Four years ago my husband and I both lost our jobs because of this mess. We have managed to survive on my husbands retirement that is running out simply because we could not find jobs because of our age. We are now facing FORECLOSURE on our home. To all the members of the Government of the United States I have a question, ARE YOU HAPPY NOW??? People are living in tents and in boxes in parks and on the streets. People that used to have homes, DO YOU CARE??? How about help us for a change and STOP LINING YOUR OWN POCKETS. I know that this is ugly and I don't wish this on anyone, but, to be perfectly honest I can't wait until they have to live on the streets, to wonder where their next meal is coming from, are their children sleeping in a box or in a bed??? Giving Bank of America or any other bank more money is a mistake. But that's ok...I no longer have an income so I WON'T BEING PAYING THAT BACK or any taxes for that matter, but, I still get to vote and trust me I will be voting. To the Government of the United States of America, good luck getting blood out of a turnip when it comes to all the bailout money that you are expecting us to pay back.

[whitemale08]

Finally a small spine is growing in the back of Congress but will we the American people have the guts to pressure Congress to abolish the un-Constitutional Federal Reserve Act of 1913 and put the illegal Federal Reserve System into RECEIVERSHIP and BANKRUPTCY COURTS NOW!!!

If we can do that, my fellow Americans, then there is hope to rebuild our republic and rebuild the American economy and take it back from these pathetic leeches and parasites that own the private banks that 'utters' our currency through the Federal Reserve System.

CALL CONGRESS NOW AND KEEP UP THE PRESSURE AND TELL THEM TO END THE FED NOW!