The news of Andrew Cuomo's letter to Congress revealing that former Treasury Secretary Paulson threatened to fire Bank of America's CEO Ken Lewis and oust the board if they tried to block the Merrill Lynch (MER) deal is not at all shocking to me. Nor is it a surprise that Bernanke “requested” this from Paulson. If you’ve been reading my articles, you know that the Treasury Department is the subordinate of the Federal Reserve.
So this latest news confirms much of what I suspected from the very beginning. In fact, I wrote a piece shortly after the announcement of the buyout calling it a bailout orchestrated by the Fed.
It was all too obvious to me based on the sequence of events, as well as the overly generous takeout price offered for Merrill by BAC. I will guarantee you this is just the tip of the iceberg. There are (and continue to be) many more hidden negotiations and power plays from behind the scenes regarding the bank bailouts, seizures and bankruptcies.
Americans need to start asking some key questions, like where is the SEC and why haven't they charged any of the banking executives with securities fraud for orchestrating the biggest Ponzi scheme in world history? Can we trust what Geithner says? When will Obama cut the strings from his puppet masters and take control of the presidency?
Americans need to start demanding some results, like criminal indictments of numerous financial executives, as well as Ben Bernanke, Henry Paulson and several Washington officials. Yet, we now see everything turning to Lewis as if he were the villain. It is likely he will be used as the scapegoat in order to distract attention from the real criminals. As I've explained previously, in large part the media will determine his ultimate fate.
When (or if, I should say) the full details underlying this entire banking / bailout fiasco are uncovered, most Americans are going to be shocked. But I won't. I've been reporting all along what has really been happening. The Federal Reserve is behind all of it. You need to start demanding the truth from the mainstream media, who don’t want the full truth to come out. They want to determine your perception of reality.