New York Attorney General Andrew Cuomo has sent an angry letter to regulators … regarding the behavior of Hank Paulson and Ben Bernanke over the allegation that they forced Bank of America (BAC) to complete its acquisition of Merrill Lynch.
Former Treasury Secretary Henry Paulson “admitted to Andrew Cuomo that he threatened to oust Ken Lewis and the Bank of America board if Bank of America invoked a Material Adverse Change (MAC) clause to block the deal, Cuomo says. Paulson also added, however, that he made this threat at the request of Ben Bernanke”, a statement he later recanted.
Mike (Mish) Shedlock wrote in his blog, “It’s crystal clear from the letter that a strong case can be made that Paulson and Bernanke coerced Lewis to carry out a merger agreement that was not in Bank of America’s shareholders best interest. Lewis arguably did so only to save his own job and the board.”
I’m with Mish – let the criminal indictments begin: Paulson, Bernanke, Lewis.