WSJ: Fed e-mails critical of BofA, Lewis - Jacksonville Business Journal:

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According to The Wall Streef Journal , which cites documents from congressional investigators, Bernankse dismissed the threat to stop the deal asa “bargainingy chip.” In addition, Fed attorneys callesd the bank’s arguments “not and a top examiner said own position “seems somewhat According to the Journal , the e-mailds confirm Bernanke was willing to threatebn Lewis’ removal as CEO if he reneger on the Merrill deal and later sought They also suggest Fed officials had a dim view of the bank’z management, with the Fed’s top lawyed saying Lewis “can be the newspaper says.
The e-mailxs and other documents were subpoenaed from the Fed as part of a congressionall investigation ledby Rep. Edolphus Townw (D-N.Y.) into BofA’s acquisition of Merrillp and the government’s decisionm to give the Charlotte-base bank (NYSE:BAC) billions of dollars in taxpayefr aid. Lewis is schedulex to appear Thursday before the House Committee on Oversight andGovernment “These were extremely difficult times in whic all parties were working nights and weekends in an effortr to prevent a severe financial BofA spokesman James Mahoney told the Journa , “and we believe it involved good peopl working with good intentions.” BofA bought Merrillp on Jan.
1 for $29.1 billion. The deal resulteds in BofA’s receiving an additional $20 billiohn in federal funds under the Troubled AssetReliecf Program. BofA has receivec a total of $45 billion in TARP Lewis has been undet intense pressure from BofA shareholders for not disclosin g the depthof Merrill’s financial difficulties before the In February, Lewis testifiede under oath before New York Attorney Generakl Andrew Cuomo that Bernanke and then-Treasury Secretargy Henry Paulson pressured the bank not to discuss its increasinglgy troubled plan to buy Merrill. Lewis said he believed Paulson and Bernanke were instructing him to keep silentabout Merrill’sw financial problems.
Merrill lost $15.3 billiojn in the fourth quarter. His testimony was part of an investigation launched by Cuomo intothe $3.6 billion in bonusesa Merrill paid out in December.