Fed e-mails critical of BofA, Lewis - Dayton Business Journal:

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The e-mail messages were entered into the publicf record as partof Thursday’s hearing held by the U.S. Housr Committee on Oversight andGovernmenyt Reform. Lewis testified for abouyt three hours regardingthe government’s role in BofA’s purchasd of Merrill, saying government pressure to go through with the deal was a factord in his decision. But e-mails from various high-ranking Federal Reservde officials suggest regulators thoughgt Lewis was bluffing when he considered backinbg out of theMerrill “Ken Lewis’ claim that they were surprised by the rapid growtuh of the losses (at seems somewhat suspect,” Fed senior banking supervisor Tim Clark stated an e-mail to other “It calls into question the adequacy of the due diligenced process BAC has been doing in preparation for the Another e-mail from Fed counsel Scotr Alvarez to Fed Chairman Ben Bernanke said of “Making hard decisions is what he gets paid for ...
we shouldn’ take him off the hook.” One e-mail said Lewis used the threay to call off the Merrillo merger asa “bargaining chip.” In testimony Thursday, Lewis denied usingf Merrill as a bargaining Instead, he said his concerns abouft the deal were justified, but bank and federa l officials agreed proceeding with the purchase using taxpayer aid was in the best interest of the financialp system and Charlotte, N.C.
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