Posted on 07/16/2009 3:30:39 PM PDT by FromLori
WASHINGTON -- Former Treasury Secretary Henry Paulson misled Congress and along with Federal Reserve Chairman Ben Bernanke looked the other way as major mistakes were made at Bank of America Corp. even as the government was preparing a $20 billion aid package for the firm, U.S. lawmakers charged Thursday.
Mr. Paulson, making his first appearance on Capitol Hill since leaving office in January at a hearing before House Committee on Oversight and Government Reform, defended the government's response to the financial crisis and his role in ensuring Bank of America closed its transaction for Merrill Lynch & Co. But lawmakers, who repeatedly interrupted Mr. Paulson to ask him to move closer to his microphone, showed little faith in his answers.
"I don't think anyone's buying what you're saying," Rep. Dan Burton (R., Ind.) said.
Rep. Edolphus Towns (D., N.Y.), who chairs the panel, described the negotiations with Bank of America as a "good, old-fashioned Brooklyn shakedown" at the expense of taxpayers. Rep. Jim Jordan (R., Ohio), accused Messrs. Paulson and Bernanke of a "clear pattern of deception and intimidation."
"The biggest, most powerful bankers have essentially received a free ride at taxpayers' expense," Rep. Dennis Kucinich (D., Ohio) added.
The salvos were the latest in the ongoing investigation by Congress of the high-stakes negotiations between top U.S. officials and Bank of America management in December after the bank threatened to walk away from its deal to acquire Merrill. Mr. Bernanke and Bank of America CEO Kenneth Lewis testified before the panel last month, and Mr. Towns has said the Securities and Exchange Commission and Federal Deposit Insurance Corp. could be next.
Mr. Paulson, at times irritated at having to repeat the same answer multiple times, said the government's actions were necessary and admitted to initially
(Excerpt) Read more at online.wsj.com ...
Related
U.S. Regulators to BofA: Obey or Else
http://online.wsj.com/article/SB124771415436449393.html
Here goes the blame game folks.Vote these people OUT!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.