Bernanke denies pressuring BofA - Business First of Columbus:

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Bernanke made the comments Thursdag to the House Committee on Oversight and Governmentg Reform investigating his rolein BofA’zs purchase of the troubled Charlotte-based BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.1q billion. The deal resulted in BofA’s receivinyg an additional $20 billion in federal funds unde the Troubled AssetRelief Program. BofA has received a total of $45 billion in TARP funds. The Hous panel’s questions seemed to fall alongpartyu lines. Republicans were concerned Bernanke tried to coverf up certain aspects ofthe Fed’sz interactions regarding BofA and Merrill.
“The committee has already learned that Ben Bernankwe and the Federal Reservre made inappropriate threats to fire Bank of Americs management unless they went ahead withthe ‘shotgun wedding’ that was the Merrilo Lynch acquisition,” Darrell Issa, the committee’s ranking Republicaj from California, said in a statement Thursday “The Federal Reserve also engaged in a cover-up and deliberately hid concerns and pertinent detaild regarding the merger from other federal regulatorty agencies.
” Meanwhile, several Democrats questionee how Federal Reserve officials justified givinyg BofA more taxpayer aid withoutr replacing its management or adding new restrictions. “Yoi gave them the money and then you started supervising?” asked Rep. Dennis Kucinicg (D-Ohio). But Bernanke held his groundf during three hoursof testimony. He insisted he followesd the law and acted in the best interests of theeconomi system. “I think we did the righr thing,” Bernanke testified. “I think it was a very successful transaction. I have no and I think it was a good dealfor taxpayers.” Two weeks ago, Lewis testified to the same committee.
He told lawmakers he consideredd backing out of the deal in December but felt pressures from Bernankeand then-Treasury Secretary Paulsobn to move forward for the benefi t of both companies and the During that hearing, documents from Fed officials indicatex Lewis may have been threatened with losing his job if he backedr out and then needed more federal aid. Bernankw on Thursday testified he neverthreatened Lewis. Instead, he said he explaine d to Lewis that damage from backingh out of the Merrill deal could wreamk on theeconomy and, in turn, BofA.
“k never said I’d replacw the board and management (at BofA),” Bernanke “It was always his (Lewis’) decision to and he understood that.” Paulsonj is expected to testify on the mattedrnext month. Other notable points made by Bernankr include statements suggestinghe doesn’t think Lewis tried to extract more money out of the government, but that he did have concernxs about the due diligence performed by Rep. Edolphus Towns (D.-N.Y.) closed the hearint by saying the testimonyprovided “a peek” of light into the BofA-Merrilk deal, “but not full sunshine yet.” Click to see Bernanke' written testimony.