Federal Reserve SUBPOENAED by Karl Denninger
Posted at 15:52
Tuesday, June 9. 2009
Those arrogant pricks over at The Fed thought they could ignore a Congressional request for information on the BAC/Merrill merger.
Note that they didn't say "nuts", they apparently ignored the request.
Well, there is now a subpoena floating over toward Bernanke's office.
Here's the Bloomie article: (see below)
June 9 (Bloomberg) -- The Federal Reserve was subpoenaed by the House Oversight Committee for e-mails and documents related to Bank of America Corp.’s purchase of Merrill Lynch & Co. after the panel was unable to obtain them through a request last week.
The committee served the subpoena today, Jenny Rosenberg, a spokeswoman for the panel, said in a telephone interview. The panel is seeking the internal Fed documents for a hearing scheduled for June 11, and Bank of America Chief Executive Officer Kenneth Lewis has agreed to testify, she said.
CNBS is reporting that The Fed has said they will "respond", which may or may not mean "comply".
We shall see.
market-ticker.org
Fed Gets Subpoena From House Panel Over Bank of America-Merrill
By Scott Lanman
June 9 (Bloomberg) -- The Federal Reserve was subpoenaed by the House Oversight Committee for e-mails and documents related to Bank of America Corp.’s purchase of Merrill Lynch & Co. after the panel was unable to obtain them through a request last week.
The committee served the subpoena today, Jenny Rosenberg, a spokeswoman for the panel, said in a telephone interview. The panel is seeking the internal Fed documents for a hearing scheduled for June 11, and Bank of America Chief Executive Officer Kenneth Lewis has agreed to testify, she said.
Lewis in February told investigators for New York Attorney General Andrew Cuomo that he was pressured in December by Bernanke and former Treasury Secretary Henry Paulson to complete the Merrill acquisition amid mounting losses at the brokerage firm. The government in January agreed to a $138 billion aid package to help Bank of America absorb Merrill Lynch.
Bank of America acquired the brokerage on Jan. 1.
Committee Chairman Edolphus Towns, a New York Democrat, and Ohio Representative Dennis Kucinich, chairman of the domestic policy subcommittee, sent Bernanke a letter this month requesting 43 items, including e-mails from Bernanke and other officials, meeting notes and the Fed’s analysis of the companies’ merger.
In an April letter to Kucinich, Bernanke said the Fed “acted with the highest integrity” during its discussions with Bank of America on Merrill Lynch and didn’t seek to withhold any information from the public on Merrill Lynch’s losses.
Towns and California Representative Darrell Issa, the committee’s ranking Republican, agreed to the subpoena today, the panel said.
Michelle Smith, a Fed spokeswoman, declined to immediately comment.
bloomberg.com |
