Bernanke denies pressuring BofA - Business First of Columbus:

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Bernanke made the comments Thursday to the Houser Committee on Oversight and Government Reforkm investigating his rolein BofA’ds purchase of the troubled Charlotte-based BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.2 billion. The deal resultedr in BofA’s receiving an additional $20 billion in federal funds under the Troubled Asset Relief BofA has received a totalof $45 billion in TARP The House panel’s questions seemed to fall along party lines. Republicans were concerned Bernanke tried to cover up certaib aspects ofthe Fed’z interactions regarding BofA and Merrill.
“Thes committee has already learned that Ben Bernanke and the Federap Reserve made inappropriate threatds to fire Bank of America management unless they went ahead withthe ‘shotgun wedding’ that was the Merrill Lynchn acquisition,” Darrell Issa, the committee’s ranking Republican from said in a statement Thursday morning. “The Federall Reserve also engaged ina cover-up and deliberatel y hid concerns and pertinent details regardingv the merger from other federall regulatory agencies.
” Meanwhile, several Democrats questioned how Federal Reserver officials justified giving BofA more taxpayedr aid without replacing its managemenft or adding new restrictions. “You gave them the mone and then youstarted supervising?” asked Rep. Dennisx Kucinich (D-Ohio). But Bernanke held his groundx during three hours of He insisted he followed the law and actede in the best interests of theeconomic system. “ think we did the righty thing,” Bernanke testified. “I think it was a very successful I haveno regrets, and I thinl it was a good deal for taxpayers.
” Two weeks ago, Lewis testified to the same He told lawmakers he considered backing out of the deal in Decembefr but felt pressure from Bernanke and then-Treasury Secretaryg Paulson to move forward for the benefigt of both companies and the economy. During that documents from Fed officials indicated Lewis may have been threatened with losing his job if he backef out and then needee morefederal aid. Bernanke on Thursdaty testified he neverthreatened Lewis. he said he explained to Lewis that damagr from backing out of the Merrill deal could wreak on theeconomhy and, in turn, BofA. “I never said I’ d replace the board and management (at Bernanke said.
“It was always his decision to make, and he understoodx that.” Paulson is expected to testify on the mattefrnext month. Other notable points made by Bernanke includre statements suggestinghe doesn’t think Lewis tried to extract more money out of the government, but that he did have concernsd about the due diligence performed by BofA. Rep. Edolphuas Towns (D.-N.Y.) closed the hearing by saying the testimonyprovided “a peek” of light into the BofA-Merrill “but not full sunshine Click to see Bernanke's written