Friday, April 24, 2009

Silence

clipped from uk.reuters.com

April 23 (Reuters) - Bank of America Corp (BAC.N: Quote, Profile, Research) Chief
Executive Kenneth Lewis testified under oath that U.S. Federal
Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry
Paulson pressured the bank to not discuss its plan to buy
Merrill Lynch & Co, the Wall Street Journal said.


In a testimony before New York's attorney general Andrew
Cuomo in February, Lewis told prosecutors that he believed
Paulson and Bernanke were instructing him to keep silent about
deepening financial difficulties at Merrill, which BofA
acquired in January.


Lewis testified that the government wanted him to remain
silent while the two sides negotiated government funding to
help BofA absorb Merrill and its losses, the paper said, citing
transcripts of the testimony.


A representative of Cuomo questioned Lewis about his
failure to disclose Merrill's fourth-quarter losses, which
eventually totaled $15.84 billion, according to the paper.