Congress to investigate BofA Merrill deal


This presumably would include investigating Bernanke and Paulson too.

WSJ money quote:

The person familiar with the investigation said the review of documents, notes from phone conversations involving Federal Reserve officials and other information suggest “there’s fire there.”

This could be huge. Look, I mean, what was BofA CEO Kenneth Lewis supposed to do when the Fed and Paulson made him an offer he couldn’t refuse? He’s hardly blameless, but still…


  1. B of A was ORDERED to raise more billion$ because even after the bailout they failed the stress test. Which suggests that (a) they’re not particularly solvent, and (b) the current stock will have its value diluted. Yet after the announcement, B of A stock rose more than 14%. Go figure.

Comments are closed.