The Federal Reserve didn't advise Bank of America or CEO Ken Lewis "on any questions of disclosure," a spokeswoman for Fed Chairman Ben Bernanke said.Lewis has told New York's attorney general that then-Treasury Secretary Henry Paulson and Bernanke pressured him in December not to discuss issues with its pending purchase of Merrill Lynch.
"It has long been the Federal Reserve's view that questions of this nature are best addressed by individual institutions and their legal counsel, as they are in a position to understand clearly their obligations and responsibilities," the spokeswoman, Michelle A. Smith, said.--WSJ
Of course, this doesn't answer the question of whether Bernanke told Paulson to "advise" (e.g. threaten) Lewis,* or if he and Paulson came to that decision together, only that Bernanke himself didn't directly go to Lewis and say "do it and die, pal!"
*Which is what Cuomo's letter claims.
Update: Paulson says he was not acting at the behest of Bernanke when he threatened Lewis, as was previously stated by Cuomo.
Then-U.S. Secretary Henry Paulson was delivering his own message, and not the Federal Reserve's, when he told Bank of America CEO Kenneth Lewis that the bank was in a binding merger contract with Merrill Lynch and Co., a spokesman for Paulson said on Thursday. "Secretary Paulson's words were his own," the spokesman said. "(Fed) Chairman (Ben) Bernanke did not instruct him to indicate any specific action the Fed might take," a spokesman for Paulson said in a statement. New York Attorney General Andrew Cuomo said on Thursday that Lewis was pressured by Paulson and Bernanke to go through with Bank of America's planned merger with Merrill Lynch.
Is Paulson backtracking or did Cuomo have it wrong all along?
Posted by guest , Apr 23, 2009 5:38PM
Did KL go into a dark room at a Lincoln Nebraska University frat house?
Posted by guest , Apr 23, 2009 5:46PM
What Michelle A. Smith said is that the Fed will not be answering any questions, so Cuomo can go pound sand.
And furthermore, Bank of America is on its own here and had better lawyer up if they are going to be talking to the AG and the press because there will likely be a slew of shareholder suits.
But what Michelle really wants to say is that banking executives should understand their obligation to "forget" that these conversations ever happened or, since they were foolish enough to leave the details in the Board minutes, they should plead the 5th.
Posted by guest , Apr 23, 2009 6:12PM
Do you know who I am? I'm Ken Lewis! I made my bones in this business when you were still chasing cheerleaders!
Posted by guest , Apr 23, 2009 6:24PM
So maybe he was told not to disclose negative aspects of the deal, but did Hank and Benji tell him to tout this as the greatest deal ever (since his last greatest deal ever)?
If you're sitting at a table and you don't know who the patsy is - it's KL.
Posted by EricM , Apr 23, 2009 6:27PM
http://www.americanbanker.com/article.html?id=20081201CJERI6GU
It's just the timing that makes it so much fun.
Posted by guest , Apr 23, 2009 6:48PM
@EricM
The timing = December 5, 2008
Posted by guest , Apr 23, 2009 7:31PM
@ 4
What is different about Ken Lewis lying and everyone else lying now?
Hope is the new "best strategy".
If we have the "poltical will" we will prevail.
Same as going onto Iraq.
Bottom line don't argue with the federal government. They are trying to save America. And don't question how they are doing it.
Look @ Bernanke. Look at the expansion and polticalization of the Chairman of the Federal Reserve.
So 2 years from now when the U.S. is looking at defaulting on it's debt do what start to question the wisdom of what we are doing now?
It took 2 years for the MSM to start to question what the hell was going on in Iraq. And we still don't know what happened to the planes full of money that the U.S sent to iraq.
The unintended consequences of what the U.S. is doing now will be catastrophic.
Posted by guest , Apr 23, 2009 7:58PM
Thanks for cutting the top off the pic Bess.
One more look at Pizza-the-Hut and I was going to throw up my mother's meatballs.
Posted by guest , Apr 23, 2009 9:42PM
Leave Ken alone!!!!
Posted by EricM , Apr 23, 2009 10:13PM
@6,
Yes, the proximity, the proximity.
Posted by Lowly Assistant , Apr 24, 2009 2:02AM
8,
I know it's late, and I just got home from work...but that was all sorts of great.
Posted by guest , Apr 24, 2009 10:14AM
@3 "I'm Mickey Abott!! I was playing Punky Brewster when all of yous was nothin'!!"
Posted by guest , Apr 24, 2009 10:37AM
Paulson: "Bring out the Gimp."
Bernanke: "Gimp's sleeping."
Paulson: "Well, I guess you're gonna have to wake him up now, won't you?"
Posted by guest , Apr 24, 2009 10:44AM
@7 I agree that you should get a gun and lock yourself in a room.
One think I don't understand is why you default on debt when you have the ability to print money.
Posted by guest , Apr 24, 2009 11:15AM
This is ridiculous and bordering on comedy.
Arrest them all for racketeering, embezzlement, fraud, treason and terrorism for good measure!
CODE PINK!
FUCK YEA!
Posted by guest , Aug 27, 2009 9:42AM
Something is very wrong! I can remember a time when Integrity, Honesty and Truthfulness were very important character traits that most people valued so highly in our leaders.
Especially our own government leaders! What has happened? Why have our standards been lowered to our current embarrassing levels?
This can not go on! We can no longer accept and tolerate this disgraceful behavior!
Where is the “We the People’s” missing 1.2 TRILLION? It’s not The Fed Scam’s” money! This money belongs to “We the People” of the United States of America!
Watch this video in disbelief!
Alan Grayson (High Quality Version): Is Anyone Minding the Store at the Federal Reserve? You Tube
http://www.youtube.com/watch?v=cJqM2tFOxLQ&eurl=http%3A%2F%2Fwww%2Etomdavidd%2Ecom%2Fblog%2F&feature=player_embedded
I want to know the truth now!
Did Ben Bernanke embezzle our money?
http://www.tomdavidd.com/blog/
Posted by Tom , Aug 27, 2009 10:01AM
Something is very wrong! I can remember a time when Integrity, Honesty and Truthfulness were very important character traits that most people valued so highly in our leaders.
Especially our own government leaders! What has happened? Why have our standards been lowered to our current embarrassing levels?
This can not go on! We can no longer accept and tolerate this disgraceful behavior!
Where is the “We the People’s” missing 1.2 TRILLION? It’s not The Fed Scam’s” money! This money belongs to “We the People” of the United States of America!
Watch this video in disbelief!
Alan Grayson (High Quality Version): Is Anyone Minding the Store at the Federal Reserve? You Tube
http://www.youtube.com/watch?v=cJqM2tFOxLQ&eurl=http%3A%2F%2Fwww%2Etomdavidd%2Ecom%2Fblog%2F&feature=player_embedded
I want to know the truth now! Did Ben Bernanke embezzle our money?
http://www.tomdavidd.com/blog/