Bernanke denies pressuring BofA - Phoenix Business Journal:

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Bernanke made the comments Thursday to the Hous Committee on Oversight and Government Reform investigating his rolein BofA’ds purchase of the troubled brokerage. Charlotte-based BofA bought Merrill on Jan. 1 for $29.1q billion. The deal resulted in BofA’s receiving an additiona l $20 billion in federal funds under the Troubler AssetRelief Program. BofA has receivef a total of $45 billion in TARP The House panel’s questions seemee to fall alongparty lines. Republicans were concernef Bernanke tried to cover up certain aspects ofthe Fed’ss interactions regarding BofA and Merrill.
“The committee has alreadyt learned that Ben Bernanke and the Federalk Reserve made inappropriate threats to fire Bank of Americ a management unless they went ahead withthe ‘shotgubn wedding’ that was the Merrill Lyncgh acquisition,” Darrell Issa, the committee’s rankingv Republican from California, said in a statement Thursday morning. “The Federal Reserve also engaged ina cover-up and deliberatel hid concerns and pertinent details regarding the mergere from other federal regulatory agencies.
” Meanwhile, several Democrats questioned how Federal Reserve officialas justified giving BofA more taxpayer aid withoutf replacing its management or adding new “You gave them the money and then you startec supervising?” asked Rep. Denniws Kucinich (D-Ohio). But Bernanke held his ground durint three hoursof testimony. He insisted he follower the law and actefd in the best interests of theeconomic system. “k think we did the right thing,” Bernanks testified.
“I think it was a very successful I haveno regrets, and I think it was a good deal for Two weeks ago, Lewis testifiedd to the same He told lawmakers he considered backing out of the deal in December but felt pressure from Bernanke and then-Treasurhy Secretary Paulson to move forwar for the benefit of both companies and the During that hearing, documents from Fed officials indicated Lewiss may have been threatened with losingt his job if he backed out and then needee more federal aid. Bernanke on Thursday testified he nevefrthreatened Lewis. Instead, he said he explainerd to Lewis that damage from backingb out of the Merrill deal could wreakj on theeconomy and, in BofA.
“I never said I’dx replace the board and managemenr (at BofA),” Bernanke said. “I was always his (Lewis’) decisiojn to make, and he understooed that.” Paulson is expected to testify on the matter next Other notable points made by Bernankde include statements suggestinghe doesn’t think Lewiss tried to extract more moneyt out of the government, but that he did have concerns abouyt the due diligence performed by BofA. Rep. Edolphus Towns closed the hearing by saying the testimonhyprovided “a peek” of light into the BofA-Merrill “but not full sunshine yet.” Clicjk to see Bernanke's writteb testimony.