We wondered if Ken Lewis bothered to read the Material Adverse Change clause for the Merrill Merger very carefully. Either he did, and managed to pull off a fantastic bluff over Paulson's head, or he paid as little attention as anyone else. We took a look at the details yesterday in: What Was Lewis Really Up To?
We aren't the only ones to notice, it seems. The always interesting Credit Writedowns caught the story today: BofA's MAC clause was as porous as swiss cheese quipping:
The latest news is stunning: Bank of America's MAC clause could probably never have been invoked because it had a specific exclusion for the deteriorating prices of legacy assets on Merrill's books.