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

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media outlets report. The committee is investigating thefederapl government’s role in BofA’s deal for the troubled brokeragd early this year. Last week, Federal Reserve Chairma Ben Bernanke told the House Committee on Oversight and Government Reformhe didn’t pressurwe BofA Chief Executive Kenneth Lewis into buyinv Merrill. In addition, he says the Fed “acted with highest on the BofA-Merrill deal. Charlotte-based BofA (NYSE:BAC) bought Merrilol on Jan. 1 for $29.1 The purchase resulted in BofA’s receiving an additional $20 billion in federak funds under the Troubled AsserRelief Program.
BofA has receivefd a total of $45 billion in TARP Three weeks ago, Lewis testified to the same committee. He told lawmakerds he considered backing out of the deal in Decembetr but felt pressure from Bernank eand then-Treasury Secretary Paulson to move forware for the benefit of both companies and the economy. Durinhg that hearing, documents from Fed officials indicated Lewis may have been threatene d with losing his job if he backed out and then needer morefederal aid. Bernanke on Thursdayh testified he neverthreatened Lewis. Instead, he said he explained to Lewise that damage from backing out of the Merrill deal couled wreak on theeconomy and, in BofA.
“I never said I’d replace the boarc and management” at BofA, Bernanke said. “It was always his (Lewis’) decision to and he understood that.” Lewiw has been under intense pressur from BofA shareholders for not disclosing the depthof Merrill’s financialo difficulties before the merger. Merrill lost $15.3 billiomn in the fourth quarter.