Bank of American Deal had Obama Team Approval before taking office

[Captain Hilts]

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/19/AR2009101903544.html

Top economic advisers to President Obama signed off on a deal to protect Bank of America from losses incurred by its purchase of failed Wall Street firm Merrill Lynch a month before the new administration took office, according to Bank of America documents.

The documents, describing internal discussions at the bank in late 2008, assert that executives were told that incoming National Economic Council Director Lawrence H. Summers and incoming Treasury Secretary Timothy F. Geithner had endorsed the deal to provide new guarantees to Bank of America.

The acquisition has been a source of protracted debate since earlier this year, when questions arose about whether federal officials exerted an inappropriate amount of pressure on Bank of America to complete the deal. There's also been debate about whether the bank made appropriate disclosures to its shareholders about losses at Merrill Lynch, its negotiations with the government for additional support and compensation plans at Merrill Lynch.

...

The documents, which were obtained by The Washington Post and are in the hands of committee investigators, are the clearest sign that top Obama officials agreed with the Bush administration and the Federal Reserve's approach.

[blindpig]

1. Campaign contributions....

money well spent.

[tabatha]

2. I guess then that the BUsh admin was socialist too

[Captain Hilts]

6. Isn't it amazing how few folks 'get' that?

[Captain Hilts]

3. Wow! I'm now in the negative on recommends...nt

[slipslidingaway]

4. Thanks, maybe post this in GD. Moore really slammed Geithner in ...

his movie for his role as NY Fed chief.

Rec...FWIW.

[Captain Hilts]

5. I need to see that as I've read a LOT of Hayek, Habermas and Marx!

[slipslidingaway]

8. Finally saw it last night, you may not find very much new info...

but it is nice to see it in one place.

[ProSense]

7. How utterly stupid.

WaPo is saying they were making deals before they were even part of the Obama administration? Before they were confirmed or selected?

Deperate and idiotic.

[Kdillard]

12. That sounds strange to me too? I take whatever the WaPo dishes with

a large grain of salt.

[winyanstaz]

9. hmmm well now..that doesnt look so good...

[Captain Hilts]

10. Remember, Hoover asked FDR to sign onto policies before inauguration and he refused...

in many ways, that wasn't fair to so clearly diss Hoover like that and it did exacerbate the economic decline for a few weeks.

[slipslidingaway]

11. More links here and hearing on 10/22...

Bernanke Guilty of Coercion and Market Manipulation
http://globaleconomicanalysis.blogspot.com/

http://oversight.house.gov/story.asp?ID=2641

"Towns, Kucinich to Hold Fourth Bank of America - Merrill Lynch Hearing
Chairman Edolphus “Ed” Towns (D-NY) and Subcommittee Chairman Dennis Kucinich (D-OH) announced last week that the House Oversight and Government Reform Committee will continue its investigation into the Bank of America (BoA) – Merrill Lynch merger on Thursday, October 22, 2009, with a hearing entitled “Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout? Part IV.”

Earlier this year, Chairmen Towns and Kucinich launched an investigation into the events surrounding the Bank of America – Merrill Lynch merger. The Committee previously received testimony from Bank of America CEO Kenneth Lewis, Federal Reserve Board Chairman Ben Bernanke and former Treasury Secretary Henry Paulson. On June 9, 2009, Chairman Towns subpoenaed internal e-mail communications and other documents from the Federal Reserve."

The witnesses scheduled to testify include:

The Honorable Mary L. Schapiro
Chairman
Securities and Exchange Commission

The Honorable Sheila C. Bair
Chairman
Federal Deposit Insurance Corporation

Mr. Christopher Cox
Former Chairman
Securities and Exchange Commission

Mr. Timothy J. Mayopolous
General Counsel
Bank of America (until December 10, 2009)

Mr. Charles “Chad” Gifford
Member
Bank of America Board of Directors

Mr. Thomas J. May
Member
Bank of America Board of Directors