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A (Sort of) Brief History of the Bank of America/Merrill Lynch/Federal Reserve Mess: What Next? King Henry!

|Includes:BAC, Goldman Sachs Group Inc. (GS), MER

Via Jr Deputy Accountant

 

Where are we at with Bank of America/Merrill/the Fed BS? Oh dear. Where do I start?

As you already most likely know, Jr Deputy Accountant has been following this story closely for two reasons. First of all, Bank of America belongs to Richmond Fed's district and we know how I feel about Richmond Fed President Lacker. Second of all, OMG WTF, the Fed is in the frying pan!! HELLO! How AWESOME is this? It takes everything I have not to go screaming like a madwoman down the streets of San Francisco tipsy on glee. But I am a professional and would never behave in such a manner.

OMG!!!!!!!!!!! YESSSS!! THE FED IN THE FRYING PAN! Someone pinch me!!!

I digress. Let's catch up, shall we? A brief history of Jr's obsession with this deliciously awesome mess:

Fed 2:
Bernanke and Paulson: Economic Terrorism at its Finest

Feb 20:
Bank of America: From Bad to Worse

April 23:
Did Bernaulson Violate Securities Law in BofA's Merrill Mess?
Mutiny Among Pirates: Paulson Throws Bernanke Under the Bus on Bank of America/Merrill Deal
Lewis: Bernaulson Made Me Do It

April 26:
Cuomo Hands Off BofA/Merrill... Case Has 1/3 of a Chance

June 9:
Federal Reserve Subpoenaed Over Bank of America/Merrill Deal

June 10:
Fed E-Mails Show Bank of America Bagged on by Bernanke, Fed Lawyers
The Enron Connection and a Peek Inside Actual Federal Reserve Inboxes. And?

June 11:
The Fed on Bank of America: "Ugly" Indeed, With the Email Chains to Prove It

June 24:
Bernanke, Issa, the King of the Goldman Rats, More BofA and OMG Not the Internet, Obama!
Surprise! The Fed Engaged in "Cover Up" on Bank of America/Merrill Deal Says New Issa Report

June 25:
Bernanke v Congress: Who the F&^k Has a Decoder Ring for *This* Bulls&$t?!
Mr Bernanke Goes to Washington: Defending the Fed, Bank of America Edition

And here we are, waiting for King Henry to throw his hat in this circus ring - oh I cannot wait for this. Let's go, Hank, you better make this good or else I've lost what non-existent respect I had for you.

Bloomberg:


Former Treasury Secretary Henry Paulson will appear next month before a congressional panel looking into whether regulators pressured Bank of America Corp. to complete its takeover of Merrill Lynch & Co., a spokeswoman for the committee said.

Paulson’s appearance was confirmed today by Jenny Rosenberg, an aide to Edolphus Towns, a New York Democrat and chairman of the House Oversight and Government Reform Committee. A date hasn’t been announced, she said. Michele Davis, a spokeswoman for Paulson, declined to comment.

The testimony may shed light on what Treasury and Federal Reserve officials did to persuade Bank of America to finish the Merrill deal after Chief Executive Officer Kenneth Lewis said he wanted to scuttle the purchase. Republicans have said regulators exceeded their authority by threatening Lewis’s job. Fed Chairman Ben S. Bernanke is scheduled to testify at a hearing tomorrow before the same panel in Washington.

“I am not going to prejudge these issues,” Towns said in a e-mailed statement. “We are not even close to finishing the Bank of America-Merrill Lynch investigation.”

Bank of America completed the acquisition of New York-based Merrill Lynch in January without telling investors that fourth- quarter losses had spiraled beyond what Lewis expected. Regulators were concerned about damage to the financial system if the Merrill Lynch takeover was aborted and the securities firm collapsed. The Charlotte, North Carolina-based bank and its regulators later announced the company would get a second bailout from the Treasury to cushion Merrill’s losses.

The lender is the biggest in the U.S. by assets and deposits. Lewis testified earlier this month before the committee, where he declined to characterize statements about his possible ouster as a “threat.”

 

And? What's ole Hank to do? He comes from Goldman, hello, he certainly knows how to play this little game. My guess is his testimony will be just as if not more obscure than Bernanke's, except King Henry will throw in The Goldman Touch: you know, that "f--k you, c---suckers, you couldn't touch me if you tried" attitude that we have grown to love from the Goldman rats.

I'm ready for this one. Is King Henry of the Rats?

Stocks: GS, MER, BAC