This from the Wall Street Journal:
Bank of America Chairman and CEO Kenneth Lewis testified under oath in New York Attorney General Andrew Cuomo's investigation in February. During the testimony, Mr. Lewis told prosecutors that then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke instructed him to keep silent about deepening financial difficulties at Merrill Lynch.
In case you didn't know it, this is called coercion to commit securities fraud. It is quite illegal. For a more in depth look at this, here is what Mike Shedlock had to say about it:
I suspect Lewis he will be forced out as CEO whether he is indicted or not. Certainly he deserves to go. The more serious issue is the appearance of coercion by Paulson and Bernanke.
Please note that Cuomo's letter states "In an interview with this Office, Secretary Paulson largely corroborated Lewis's account. "
As far as I am concerned, Paulson just pleaded guilty.
An Opinion article (also from the Wall Street Journal) had this to add:
The political class has spent the last few months blaming bankers for everything that has gone wrong in the financial system, and no doubt many banks have earned public scorn. But Washington has been complicit every step of the way, from the Fed's easy money to the nurturing of Fannie Mae and Freddie Mac, and since last autumn with regulatory and Congressional panic that is making financial repair that much harder. The men who nearly ruined Bank of America have some explaining to do.
The name of that article says it all - "Busting Bank of America: A case study in how to spread systemic financial risk"
Trust the gov. They're here to help you. And they'd never break their own laws, right? Right?
Bueller? Bueller?
That's okay. We can rest assured that Obama, being the Man who will Change Washington, will not sleep until these men are brought to Justice and pay for their crimes! It's gonna happen. Really.
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