Paulson Defends Push for Merrill Lynch Merger

Washington Times ^ | July 16, 2009 | Sean Lengell

[kellynla]

Former Treasury Secretary Henry M. Paulson Jr., in defending the federal government's push for a reluctant Bank of America to complete a planned takeover of Merrill Lynch late last year, said it would have been "unthinkable" and potentially illegal for the bank to scuttle the deal.

Mr. Paulson, who is set to testify Thursday morning on the merger before the House Oversight and Government Reform Committee, said in a prepared statement submitted to the panel that he "intended to deliver a strong message" to Bank of American Chief Executive Ken Lewis that backing out of the deal would be a "destructive action for which there was no reasonable legal basis."

He added that such an action "would show a colossal lack of judgment and would jeopardize Bank of America, Merrill Lynch and the financial system."

The committee is investigating claims that top government officials, including Mr. Paulson and Federal Reserve Chairman Ben S. Bernanke, inappropriately strong armed Mr. Lewis to complete deal because the bank had received $25 billion in federal bailout funds.

[kellynla]

"push?"...sounds more like something out of the GODFATHER... "I made him an offer he couldn't refuse"...

[kittymyrib]

Too bad no one in the room during the crisis meeting last September caught this Goldman Sachs lackey on his knees before Nancy Pelosi. He was literally begging for GS to cash in on the billions of taxpayer money that they got later through AIG. He should be in jail instead of testifying before the no nothings in D.C. today.

[KarlInOhio]

Merrill Lynch was in a materially worse situation than they claimed. If one side is caught lying about what they are selling (including the whole company), the buyer is almost always allowed to back out. ("What do you mean by 'mutant, radioative termites'? You didn't disclose that when I agreed to buy the house.")

"push?"...sounds more like something out of the GODFATHER... "I made him an offer he couldn't refuse"...,

Michael: Luca Brasi held a gun to his head, and my father Secretary Paulson assured him that either his brains or his signature would be on the contract.

[easttennesseejohn]

Of course Paulson had to defend the merger. Wasn’t Goldman “into” Merrill Lynch. Look at the record. Old Hank the Hammer took real good care of his former Goldman pals.

[cranked]

Paulson = former CEO of Goldman Sachs.

Of course Paulson supports such a “push”.

We are so getting screwed by Barry, Paulson, The Dems and RINOs, it frakin ridiculous.