Bernanke to testify on BofA-Merrill deal - Los Angeles Business from bizjournals:

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According to Dow Jones Bernanke is to appear befor e the House Committee on Oversight and Government Reform onJune 25. Last to acquire the troubled brokeraged late last year in an effort to savethe U.S. The hearing, conducted by the Housr Committee on Oversight andGovernment Reform, focusesd on federal officials’ role in BofA’sa purchase of Merrill Lynch. BofA . The deal resultecd in BofA’s receiving under the Troublerd AssetRelief Program. BofA has received a total of $45 billio in TARP funds. Lewisx has been under intense pressure from BofA shareholders for not disclosing the depthof Merrill’ s financial difficulties before the merger. Merrillk .
Lawmakers questioned Lewis on reports that he felt pressurede byfederal authorities, including Bernanke and then-Treasury Secretary Henry to go ahead with the deal as Merrill’s losses Lewis testified that BofA contacted officials at the U.S. Treasury and Federal Reserve in mid-Decembef to inform them that thebank “had serious concerns abouy closing the transaction.” BofA, he said, was considering declaring a “materia l adverse change,” which can allowa an acquirer to back out of a proposed deal.
Lewis testified that Paulsobn toldhim BofA’s management “would or could” be remove if the bank backed out of the When lawmakers pressed him Thursday on the allegec threats by regulators, Lewis said both parties were concerned aboutr making the best decisions for the health of the U.S. economy and BofA. He explainesd that a decision that would harm the economy wouldx also harm BofA because of its massive size and Lewis testified thathe wasn’t intimidated by the threat of losing his job but by the “seriousneszs of the threat” and the ramifications on the overalo economy had an influence on his decision.
“Just six monthsd later, it is easy to forget just how closde to the brink oursystem came,” Lewis said. “I will nevetr forget.”