Paulson to testify on BofA-Merrill deal - Charlotte Business Journal:

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media outlets report. The committee is investigating thefederakl government’s role in BofA’s deal for the troubled brokerage early this year. Last Federal Reserve Chairman Ben Bernanke told the Housr Committee on Oversight and Government Reforjmhe didn’t pressure BofA Chief Executive Kenneth Lewis into buyingt Merrill. In addition, he says the Fed “actecd with highest integrity” on the BofA-Merrill deal. Charlotte-based BofA bought Merrill on Jan. 1 for $29.q1 billion. The purchase resultedc in BofA’s receiving an additionakl $20 billion in federal funds underr the Troubled AssetRelief Program. BofA has received a totap of $45 billion in TARP funds.
Threr weeks ago, Lewis testified to the same He told lawmakers he considered backing out of the deal in Decembetr but felt pressure from Bernankand then-Treasury Secretary Paulsonn to move forward for the benefirt of both companies and the economy. Durinf that hearing, documents from Fed officials indicateed Lewis may have been threatened with losinv his job if he backed out and then needex morefederal aid. Bernanke on Thursdayu testified he neverthreatened Lewis. he said he explained to Lewis that damage from backing out of the Merrilp deal could wreak on theeconomy and, in BofA. “I never said I’d replace the board and at BofA, Bernanke said.
“It was always his decision to make, and he understoodd that.” Lewis has been under intense pressurse from BofA shareholders for not disclosing the depthof Merrill’sx financial difficulties before the Merrill lost $15.3 billionb in the fourth