Wikinvest Wire

The Fed gets a subpoena

Tuesday, June 09, 2009

Reuters reports that the House Committee on Oversight and Government Reform has subpoenaed the Federal Reserve in an attempt to persuade the central bank to turn over documents related to Bank of America’s acquisition of Merrill Lynch.

The subpoena comes two days before Bank of America Chief Executive Ken Lewis is set to testify before the House Oversight Committee, which is probing the transaction, what Lewis knew about Merrill's financial condition and potential regulatory pressure to complete the deal.

Lewis, in testimony prepared for the hearing, said he became aware of "significant, accelerating losses" at Merrill in mid-December after the shareholder vote. Lewis has consistently maintained in statements that he did not realize the severity of Merrill's problems until after that vote.

The CEO, who has since been ousted as chairman, also said he told Treasury and Fed officials he was considering declaring a "material adverse change" which would have allowed it to walk away from the acquisition.
This is getting interesting...

3 comments:

Anonymous said...

The Fed has printed a trillion dollars, putting the pensions and retirement savings of millions of Americans at risk. It is time Congress put a stop to the madness. Get that helicopter guy out of there already, before he hyper inflates away any chance for the average person to have a decent retirement.

Anonymous said...

Swiss publication writer supports Ron Paul’s Audit the Fed Campaign. The Fed threatening Lewis and Bank of America is just business as usual by the Fed and the government. Still
BOA is just as guilty as the Fed in creating the financial meltdown.

Review the following URL for the essay which covers the Ron Paul's Audit the Fed Campaign & Beware False Bank Profits From Accounting Shenanigans at:
http://www.bfi-capital.com/mountainvision/newsletter.php?view=1679091c5a
Readers can receive the newsletter by sending name and e-mail to: contact(at) bfi-consulting.com

Sujan Patricia said...

It is a government entity but is controlled by private bankers throughout the world and it is unregulated and congress has no power to subpoena their records or ask for an audit.

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