Fed Chairman Ben Bernanke told Congress Thursday he didn’t threaten nor pressure BofA (BAC) into Merrill ‘s acquisition in a deal that screwed the taxpayers of an additional $20 billion.
“I did not tell Bank of America’s management that the Federal Reserve would take action against the board or management” if they decided to invoke a clause in the acquisition contract in an attempt to stop the deal, Bernanke told the House Oversight and Government Reform Committee. “Moreover, I did not instruct anyone to indicate to Bank of America that the Federal Reserve would take any particular action under those circumstances.”
Neither I nor any member of the Federal Reserve ever directed, instructed or advised Bank of America to withhold from public disclosure any information relating to Merrill Lynch, including its losses, compensation packages or bonuses or any other related matter,” the Fed chief said. [AP]
Issa vs. Bernanke
