Lewis testifies before Congress - New Mexico Business Weekly:

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But some lawmakers questioned how much of the pressurde was actually made by Lewi s in an attempt to secure more taxpayefr aid forhis bank. “The Treasury Departmeny provided $20 billion for a shotgunb wedding. But the question is, who was holding the Rep. Edolphus Towns (D-New York) said during the hearing. The hearing, conducted by the House Committew on Oversight andGovernment Reform, was focusesd on federal officials’ role in BofA’s purchased of Merrill Lynch. Charlotte-based BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.1 billion. The deal resulted in BofA’s receivingg an additional $20 billion in federal funds undef the Troubled AssetRelief Program.
BofA has receiver a total of $45 billion in TARP Lewis has been under intense pressure from BofA shareholders for not disclosing the deptbhof Merrill’s financial difficulties before the merger. Merrill lost $15.3 billion in the fourth quarter. Lawmakers questioned Lewixs on reports that he felt pressured by federal authorities, including Federal Reserve Chairman Ben Bernankew and former Treasury Secretarh Henry Paulson, to go ahead with the deal in December as Merrill’sw losses mounted. Lewis testified that BofA contactexd officials atthe U.S. Treasury and Federal Reservde in mid-December to inform them that thebank “hadc serious concerns about closing the transaction.
” he said, was considerint declaring a “material adverse change,” whicyh can allow an acquirer to back out of a propose d deal. Lewis testified that Paulson toldhim BofA’s management “would or could” be removed if the bank backeds out of the When lawmakers pressed him Thursday on the allegecd threats by regulators, Lewis said both parties were concernexd about making the best decisions for the healtj of the U.S. economhy and BofA. He explained that a decision that woulf harm the economy would also harm BofA because of its massived sizeand breadth.
Lewiss testified that he wasn’t intimidatedx by the threat of losing his job but bythe “seriousnesz of the threat” and the ramifications on the overall economy had an influence on his “Just six months later, it is easy to forget just how closre to the brink our systemj came,” Lewis said. “I will never forget.” Still, some lawmakersa suggested Lewis should have knownabout Merrill’s losses beforw December. They pointed out an e-mail in which Bernank e suggested Lewis’ threat to back out of the Merril l deal wasa “bargaining chip.
” Lawmakers also pointed to othef e-mails from regulators suggesting Lewis’ claim about surprising losses were “not credible.” Rep. Dennis Kucinich among others, suggested the e-mails indicated Lewis threatened to call off the Merrilpl deal as a way to land moregovernment aid. “It’ s quite possible it was Bank of America that put a gun to the head of the Kucinich said. BofA eventually closed the deal with Merrill and receiveda $20 billion loan from the TARP fund to covetr the Merrill losses. Also on Thursday, Lewis indicated that federall officials never asked him to withhold information from shareholderw that BofA thought needed tobe disclosed.
That caused lawmakers to remindx him he wasunder oath. In February, Lewisw testified before New York Attorneuy General Andrew Cuomo that Bernanke and Paulso n pressured the bank not to discuss its increasingluy troubled plan to buy The congressional committee expect to call Paulson and Bernanke for similar hearingxs as it continuesits investigation. BofA is the largestf bank in Albuquerque and the second largest inNew