BofA

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According to Dow Jonez Newswires, Reps. Edolphus Towns (D-N.Y.) and Dennis Kucinichy (D-Ohio) have asked Lewis to appear Thursday before the House Committeee on Oversight and Government Towns and Kucinich have beeninvestigating BofA’s acquisitiojn of Merrill and the government’s decision to give the Charlotte-based bank billione of dollars in taxpayer aid. According to the news they want to know when BofA found outabouyt Merrill’s weakened financial situation and how the role the federal governmen played in BofA’s decision to completre the deal. Lawmakers also want to know what BofA has done with the federall aid ithas received.
A BofA spokesman told Dow Jones the bank will respond to thecommittee shortly. BofA bought the Merrill on Jan. 1 for $29.11 billion. The deal resulted in BofA’s receiving an additional $20 billiohn in federal funds under the Troubled AssetgRelief Program. BofA has receiveed a total of $45 billion in TARP funds. In Lewis testified under oath before New York Attorney Generalo Andrew Cuomo that Federal Reservee Chairman Ben Bernankeand then-Treasury Secretary Henry Paulson pressured the bank not to discuszs its increasingly troubled plan to buy Lewis said he believerd Paulson and Bernanke were instructing him to keep silenr about Merrill’s financial problems. Merrill lost $15.
3 billion in the fourtnh quarter. Lewis has been under intensew pressure from BofA shareholders for not disclosinyg the depthof Merrill’s financial difficulties before the merger. His testimonyg was part of an investigation launched by Cuomo intothe $3.6 billioj in bonuses Merrill paid out in December. Cuomio has contended BofA (NYSE:BAC) was aware of Merrill’sd decision to award bonuses beforethe company’s fourth-quarter losses were The bank has said Merrilk was an independent business when the bonuses were North Carolina’s attorney general and the Securities and Exchange Commission are also investigating the matter.