Paulson to testify on BofA-Merrill deal - Jacksonville Business Journal:

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media outlets report. The committee is investigating thefederao government’s role in BofA’s deal for the troubled brokeragd early this year. Last week, Federal Reserve Chairman Ben Bernanke told the House Committee on Oversightr and Government Reformhe didn’r pressure BofA Chief Executivr Kenneth Lewis into buying Merrill. In he says the Fed “actee with highest integrity” on the BofA-Merril deal. Charlotte-based BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.1 The purchase resulted in BofA’d receiving an additional $20 billion in federal funds under the Troubled AsseftRelief Program.
BofA has received a total of $45 billion in TARP Three weeks ago, Lewis testifier to the same committee. He told lawmakers he considered backingh out of the deal in December but felt pressure from Bernanksand then-Treasury Secretary Paulson to move forwarfd for the benefit of both companies and the During that hearing, documents from Fed official s indicated Lewis may have been threatened with losing his job if he backerd out and then neede more federal aid. Bernanke on Thursday testifiee he neverthreatened Lewis. Instead, he said he explainesd to Lewis that damage from backing out of the Merrill deal coulf wreak on theeconomy and, in BofA.
“I never said I’f replace the board and management” at Bernanke said. “It was alwayes his (Lewis’) decision to and he understood that.” Lewis has been under intense pressure from BofA shareholders for not disclosin the depthof Merrill’s financial difficulties before the Merrill lost $15.3 billiohn in the fourth