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TechnoratiAwaiting Bernanke, House Panel Subpoenas Fed
Anticipating an appearance by the Federal Reserve chairman, a House committee said Friday that it had served the Federal Reserve with a second subpoena for documents related to Bank of America's acquisition of Merrill Lynch.
![[U.S. Federal Reserve Board Chairman Ben Bernanke waits for President Barack Obama to arrive for remarks in the East Room of the White House in Washington June 17, 2009. (REUTERS/Kevin Lamarque)]](http://www.commondreams.org/files/article_images/bernanke_bofa.jpg "bernanke_bofa.jpg")
Representative Edolphus Towns, the New York Democrat who is chairman of the House Oversight and Government Reform Committee, said the panel was seeking additional documents about closed-door discussions by the Fed, the Treasury Department and Bank of America dating from September to January.
The Fed's chairman, Ben S. Bernanke, is scheduled to testify before the committee next Thursday about the Bank of America-Merrill Lynch deal and the central bank's involvement in it.
At a previous hearing on June 11, lawmakers reviewed e-mails and other documents that the committee obtained from the Fed under its first subpoena and heard Bank of America's chief executive, Kenneth D. Lewis, testify that he was pressured by federal regulators in December to complete the Merrill deal.
Lawmakers have accused Mr. Bernanke and the Treasury secretary at the time, Henry M. Paulson Jr., of pressuring Mr. Lewis to go through with the Merrill deal and not to disclose Merrill's financial problems ahead of the transaction's completion in January.
During last week's hearing, Mr. Lewis acknowledged that Bank of America was "strongly considering" walking away from the Merrill deal after it discovered billions of dollars of additional losses at the securities firm.
Mr. Lewis confirmed that Bank of America considered whether the ballooning losses at Merrill constituted a material adverse condition, or M.A.C., that would allow it to scuttle the deal.
Lawmakers read from e-mail messages sent between federal officials, in which the officials wrote that "the M.A.C. threat is irrelevant because its not credible."
Mr. Lewis replied: "This was not some wild bluff. We thought we had the real possibility of the M.A.C."
10 Comments so far
Show AllWake Up People - The "Fed" is an EVIL Creation and its about as Federal as Federal EXpress - in other words - It is a PRIVATE Banking Cartel - Whom Obama is Handing Over Our Government to!
We NEED TO END The FED! But First lets start with Ron Pauls bill HR 1207 to Audit the Fed.
The Bill now has over 230 co sponsors including Dennis Kucinich!
Then there is the Senate version S 604 - Go Call you Congress & Senate Members and TELL them, Demand The To Support HR 1207!
Lets Bring Some REAL Transparency to the Fed, The Government and what is going on with Our Trillions of dollars being given to Banksters as Bailouts!
HR 1207 Support it! Demand It - Lets Audit the FED - The LETS END THE FED!!!
Ron Paul was Right, Still is, Where have you Been?!
...and the Brokeback Dollar is based on 'trust' in these guys? Call me a gold bug!
Subpoenas don't work any more. The Demoks let those go along with habeas corpus and the rule of law in a bid to win the oval orifice.
The USA is in decay. Of empires from history it has been one of the most short lived. It interesting how perceptions and the TIME give the illusion of permanence and greatness.
We live in these times and that the only reason we somehow think that the United States of America the most successful, prosperous or "greatest" nation in history.
I am sure the Citizens of Rome felt the same. I am sure the Citizens of China felt the same. I am sure the Citizens of the Mughal Empire felt the same. I am sure the citizens of the British Empire felt the same. I am sure the citizens of Egypts empire felt the same.
Each of them. We are the greatest country EVER. We are the Greatest empire EVER.
All of them gone or meaningless.
The only real difference is this.
Egypt was the worlds greatest power for hundreds of years. China for man hundreds more. Even the British empire the world greatest many more years then that of the United States of America.
For all intents and purposes, when it comes to discussing economic systems within the context of history, that of the United States of America and its Capitalism, is the least successful of all.
From the information on PBS "Frontline", it sounds like Henry Paulson was the one who chose Bank of America to become the "dumping ground" for Merrill Lynch's garbage.
Didn't J.P. Morgan/Chase get stuck with Washington Mutual's garabage, with the help of taxpayers?
How did Goldman Sax manage to escape Henry Paulson's search for dumping grounds?
It all boils down to supporting the war economy. Give this a listen: http://www.globalresearch.ca/index.php?context=va&aid=14010
Stone, when Dennis Kucinich is right, he is right! Try the only other Member of the American Congress with a conscience on this video(specifically at 6:45): http://www.youtube.com/watch?v=xvC4Fue_2BA It seems that Kucinich and Paul are about the only two in Congress who opposed these wars from the very beginning. Someone please let me know the names of others who never voted for these wars and also never voted for war supplementals. I think Lynn Woolsey may be one.
As for "It all boils down to supporting the war economy", you are absolutely correct. The Fed was formed in 1913 and this nation has been either supporting a war are fighting a war (declared or undeclared) nearly the entire time since then.
nothing will be done in the end because these law makers either have their hands in the bankers pockets or the bankers have their hands in the law makers pants. i was banker
for 6 yrs.and the corruption and criminality was beyond beyond! karma will visit these
bastards and they will suffer!
I agree. Look at Bernake's expression in this picture. You know what this expression holds? "This is going to be fun....." that's what I think it holds. It is a poorly disguised look of both amusement...and contempt. And yes, there-will-come-a-DAY when this man, and all the others of his ilk will give an account of their lives, and all will be laid bare, and nothing will be hidden. They might believe otherwise, in all their illusions of grandiosity... BUT...THAT DAY WILL COME. LET IT COME. YES, LET IT COME.
And so it goes as the QUAGPIRE slowly unwinds.
What will be revealed is almost a biblical quote, what with all that "gold" turned to rust and the mouths full of ashes.
We at the bottom have always known the game. And of course the gamers run the scam (though they must ever plead ignorance of such a monster) It is really the people in the middle who are surprised...... Always so surprised.
It seems so much like an OPERA doesn't it? And now Bernanke the alto comes to give his solo.
"I didn't know! They didn"t know, They didn't tell me, we didn't tell them. I couldnt say we didn't tell, but if they knew, they wouldn't do! the things, the things , we wanted them TO!
But then again I didn't know!!!"