Developing… Andrew Cuomo has sent an angry letter to regulators including Mary Schapiro, Elizabeth Warren, Chris Dodd and Barney Frank regarding the behaviour of Hank Paulson and Ben Bernanke over the allegation that they forced Bank of America (BAC) to complete its acquisition of Merrill Lynch.
The upshot: Ken Lewis was definitely interested in pulling the plug on the Merrill Lynch deal, but he was pressured not to with a threat that he’d be fired and the board would be completely sacked. This came from Hank Paulson, who claims it was based on analysis from the Fed, that Bank of America had no basis to pull out of the deal. Obvioiusly, officials had every incentive to determine that BofA shouldn’t have been allowed to pull out of the deal.
The main letter is embedded here.
Below it are the various exhibits, including Ken Lewis’ testimony and minutes of a BofA boardmeetings/