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Thursday, June 25, 2009
News / Biz Bernanke's turn to answer BofA questions
Posted By Rhiannon Fionn-Bowman on Thu, Jun 25, 2009 at 10:46 AM
Who is telling the truth? Was The Ken bullied, or not?
It's hard to believe that someone who has to practice smiling, according to a recent Frontline episode on PBS "Breaking the Bank," would be bullied by anyone. But, that's what The Ken is claiming.
He says he was told to keep mum or risk his job. So, when it came to explaining the details of BofA's Merrill Lynch merger to shareholders, he did just that: he keep the inner workings of the deal to himself.
Now it's CYA time for all involved.
Federal Reserve Chairman Ben Bernanke told Congress today he didn't pressure Bank of America into acquiring Merrill Lynch in a deal that ultimately cost taxpayers $20 billion.Bernanke, in prepared testimony to a House committee investigating the matter, said he did not threaten action against Bank of America's CEO Kenneth Lewis or the bank's board members if they decided to abandon the takeover.
"I did not tell Bank of America's management that the Federal Reserve would take action against the board or management" if they decided to invoke a clause in the acquisition contract in an attempt to stop the deal, Bernanke told the House Oversight and Government Reform Committee. "Moreover, I did not instruct anyone to indicate to Bank of America that the Federal Reserve would take any particular action under those circumstances."
If you missed the broadcast, you can watch "Breaking the Bank" online here.
Further reading from Charlotte.com: "Documents: Fed wanted action against BofA management"
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