Emails Reveal Fed Considered Ken Lewis "Reckless" And Thought About Removing Him

kenlewisside tbi

Ben Bernanke and Fed officials sharply criticised Bank of America and CEO Ken Lewis in emails, the Wall Street Journal is reporting.

Ken Lewis, the chief executive of Bank of America, was reportedly trying to pull out of its deal to buy Merrill Lynch.

The emails obtained by the Wall Street Journal, probably from Congressman Edolphus Towns who subpoened them from the Fed, confirm that Bernanke was willing to threaten to remove Lewis from his position if he backed out of the deal.

Other revelations:

  • Ben Bernanke says that the threat to pull out is just a “bargaining chip.”
  • Lawyers for the Fed called the Ken Lewis’ arguments “not credible” and  said he “can be reckless.”
  • A top bank examiner says Lewis’s position “seems somewhat suspect.”

 

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.