Bernanke says he didn't bully BofA to buy Merrill

[Lone_Star_Dem]

Source: Associated Press

WASHINGTON – Federal Reserve Chairman Ben Bernanke faced an unusual political trial Thursday and disputed accusations that he pressured Bank of America to acquire Merrill Lynch in a deal that cost taxpayers $20 billion.

Bernanke denied to a House committee investigating the matter that he threatened action against Bank of America's CEO Kenneth Lewis or the bank's board members if they abandoned the takeover.

It marked Bernanke's first public comments since the House committee launched an investigation this year into whether he or other government officials bullied Bank of America to stick with its plan to combine the two financial powers after Lewis learned of Merrill's financial woes.

During the three-hour hearing, Bernanke faced skepticism and often-hostile questioning — unusual for a Fed chairman, who typically commands deference in public settings.

Adopting the role of outsider, Republicans in particular have turned aggressive toward Bernanke, trying to link him to the Obama administration as advocates of government meddling in private industry. Many Republicans are suspicious of the administration's plan to expand the Fed's regulatory powers.

Read more: http://news.yahoo.com/s/ap/20090625/ap_on_bi_ge/us_bern... ;_ylt=Aus8Kk8dc799XS1MQv40kG6s0NUE;_ylu=X3oDMTJtMDFqdmdzBGFzc2V0Ay9hcC8yMDA5MDYyNS9hcF9vbl9iaV9nZS91c19iZXJuYW5rZQRwb3MDMwRzZWMDeW5faGVhZGxpbmVfbGlzdARzbGsDYmVybmFua2VzYXlz

[On the Road]

1. I Would Wager That What Happened is That

BoA expressed interest or made an offer for Merrill, but at some point they got cold feet or started to express doubts. THEN Bernanke bullied them. And it's probably a good thing.

[nyc 4 Biden]

2. I don't think it's a good thing.

Merrill was/is a hot mess and BOA should have been able to back out of the deal if they wanted to, IMHO.

[On the Road]

3. Given What Happened After Lehman Brothers

any additional failures of major institutions carried a catastrophic risk. It was a tipping point, and the economy just escaped the worst.

[pjt7]

4. It would be better for Merril to have

gone bust & our economoy to been in a harsher, but SHORTER depression.

[Turbineguy]

5. It was Sunday night

and everybody ran out of ideas.

There are times when you have to do something, even if it's wrong.

At the risk of getting flamed, it seemed to me that Kucinich was telling us what we could have avoided had he been elected President. He's right of course.