NEW YORK (CNNMoney.com) -- Bank of America chief Ken Lewis told lawmakers Thursday that pressure from federal regulators played an important part in the company's decision to continue with its planned acquisition of Merrill Lynch late last year.
Testifying before the House Committee on Oversight and Government Reform, Lewis said that threats by regulators to remove management or board members were not only credible, but indicated just how strongly the government felt it was to carry out the acquisition.
But he added that this was not the only reason why Bank of America decided to go ahead with the deal. "[Pressure from the government] was a strong influence on my decision, but not the only influence," Lewis told lawmakers.
Lewis, who was peppered with questions from Congressional members from both parties about the deal, said he also worried about the potential negative impact that backing out of the acquisition could have had on the nation's financial system and Bank of America.
He also acknowledged that the promise of additional government aid helped convince the company from declaring a "material adverse change", which would have allowed Bank of America to walk away from the purchase.
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1 comment:
Pockets were lined and deals were made as now those in the Bush Administration are gone. Americans have to face the fact we were robbed by our Law Makers, Wall Street and Banks. The rush to get their hands on 750 billion dollars after stealing 9 Trillion over 8 years. Now look for tell all books by those who need more money. I read a young woman who got an interview with President Kennedy now says she had an affair with the President when she was nineteen years old. Now one might ask why now and who cares. It's about money and the victim isn't here to defend himself. Greed is stronge in the US as many Americans will sell out this country or anyone for a buck. The Saudi's knew the US weakness and we see now how Law Makers will say so stupid stuff because their paid by lobbyist.
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