Thursday, April 23, 2009

USA: Economics: Big Bank's finances manipulated by Paulson's threatening "leverage" which intimated top banker

MarketWatch reports/comments from New York (Last update: 2:45 p.m. EDT April 23, 2009)

Bernanke and Paulson look foolish if Lewis is right
Commentary: Bank of America CEO describes power in a panic

If Ken Lewis is telling the truth -- and he'd be foolish to lie to New York State Attorney General Andrew Cuomo -- then Federal Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson were more than concerned about the financial crisis. They were panicking.

Why else would the two most important administration officials presiding over the financial crisis play hardball backroom politics with Lewis, the chief executive of Bank of America Corp, who had taken significant risk by acquiring Merrill Lynch & Co. last September?

Lewis testified that Paulson used threatening language to push through the deal, according to a letter released by Cuomo's office Thursday.
Torture? Mental torture of Lewis by Paulson, perhaps. Perhaps.

This is a useful comment-article that should by read by many interested in the recent financial misdeeds and ensuingly-increasing uncertainty as to financial stability of banks sui generis, Bank of America included.

Further Research: "For Freddie and Fannie Trouble at the Top" (Apr24,2k9), by Maurna Desmond
American Southern becomes year's 26th failure, by Wallace Witkowski, MarketWatch (Ap24,2k9)
Some banks rise refWrite (Ap11,2k9)


1 comment:

Realtor Julie said...

Thanks for sharing the article, sure is an interesting read.

Take care, Julie