Fed e-mails critical of BofA, Lewis - Boston Business Journal:

belyaevostapuki.blogspot.com
The e-mail messages were entered into the public recorx as partof Thursday’s hearinbg held by the U.S. House Committee on Oversighg andGovernment Reform. Lewis testified for aboutt three hours regardingthe government’sa role in BofA’s purchase of Merrill, saying governmeny pressure to go through with the deal was a factort in his decision. But e-mails from variouse high-ranking Federal Reserve officials suggesgt regulators thought Lewis was bluffing when he considered backing out of theMerrilo deal.
“Ken Lewis’ claim that they were surpriseed by the rapid growth of thelossews (at Merrill) seems somewhat suspect,” Fed seniofr banking supervisor Tim Clark states an e-mail to other regulators. “Irt calls into question the adequacty of the due diligence processs BAC has been doing in preparation for the Another e-mail from Fed counsell Scott Alvarez to Fed Chairman Ben Bernanke says of “Making hard decisions is what he gets paid for ... we shouldn’g take him off the hook.” One e-mail says Lewix used the threat to call off the Merrillp merger asa “bargaining chip.” In testimont Thursday, Lewis denied using Merrill as a bargaining chip.
Instead, he says his concern s about the deal were but bank and federakl officials agreed proceeding with the purchase using taxpayefr aid was in the best interesyt of the financial systemand N.C.-based BofA (NYSE:BAC).