Lewis testifies before Congress - The Business Journal of the Greater Triad Area:

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In prepared testimony before Congressional Lewis said BofA contacted officials atthe U.S. Treasuruy and Federal Reserve in mid-December to inform them that thebank “hadr serious concerns about closing the transaction.” BofA, he was considering declaring a “materia l adverse change,” which can allow an acquirefr to back out of a proposexd deal. “Treasury and Federal Reserve representatives asked us to delayg anysuch action, and expressed significant concerns aboutt the systemic consequences and risk to Bank of Americaw of pursuing such a course,” Lewis said.
“Wes commenced discussions to determine whethere governmental support could limi the risk of proceeding withthe transaction. Both the government and Bank Americza were aware that the global financial system was in fragile and that a collapsre of Merrill Lynch could hastena crisis.” Charlotte-baseed BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.1 billion. The deal resulted in BofA’s receiving an additionapl $20 billion in federal funds under the Troubled AsserRelief Program.
BofA has received a total of $45 billion in TARP Lewis has been undert intense pressure from BofA shareholders for not disclosingv the depthof Merrill’sx financial difficulties before the merger. Merril lost $15.3 billion in the fourth In February, Lewis testified under oath before New York Attorneyu General Andrew Cuomo that Federal Reservse Chairman Ben Bernankeand then-Treasury Secretary Henrh Paulson pressured the bank not to discuss its increasingluy troubled plan to buy Merrill. Lewisw said he believed Paulson and Bernanke were instructingh him to keep silentabout Merrill’s financialp problems. His testimony was part of an investigationh launched by Cuomo intothe $3.
6 billionm in bonuses Merrill paid out in Click to follow Lewis' testimony on