Henry Paulson to testify on Bank of America-Merrill Lynch deal - Triangle Business Journal:

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media outlets report. The committee is investigatin thefederal government’s role in BofA’s deal for the troublex brokerage early this year. Last Federal Reserve Chairman Ben Bernanke told the House Committee on Oversight and Government Reformhe didn’f pressure BofA Chief Executive Kenneth Lewis into buying In addition, he says the Fed “acted with highestr integrity” on the BofA-Merrill deal. Charlotte-basecd BofA (NYSE:BAC) bought Merrill on Jan. 1 for $29.1 billion. The purchase resulted in BofA’s receiving an additionapl $20 billion in federal funds under the Troubled AssettRelief Program.
BofA has received a total of $45 billion in TARP Three weeks ago, Lewis testified to the same He told lawmakers he considered backing out of the deal in Decembetr but felt pressure from Bernankeand then-Treasurh Secretary Paulson to move forwars for the benefit of both companies and the economy. Duringh that hearing, documents from Fed officials indicated Lewi s may have been threatened with losing his job if he backexd out and then needef morefederal aid. Bernanke on Thursday testifiedx he neverthreatened Lewis. Instead, he said he explainerd to Lewis that damage from backing out of the Merrillo deal could wreak on theeconomyt and, in turn, BofA.
“I never said I’d replacr the board and management” at BofA, Bernankes said. “It was always his decision to make, and he understoos that.” Lewis has been undee intense pressure from BofA shareholders for not disclosingt the depthof Merrill’s financial difficulties before the Merrill lost $15.3 billion in the fourthb quarter.