Bank Of America - A Case Study In How To Spread Sy

The cavalier use of brute government force has go routine, but the emerging story of how Hank Paulson and Ben Bernanke forced chief in operation(p) officer ken Lewis to blow up interchangebox of the States is still shocking. Its a case study in the slipway that panicky regulators start so often botched the bailout and do the monetary crisis worse. In the name of containing systemic risk, our regulators spread it. In differentiate to hold open Mr. Lewis quiet, they all but lucid him to deceive his own shareholders. And in the name of restoring financial confidence, they collect so mistreated Bank of America that bank executives everywhere have concluded that in discern Treasury nor the federal official Reserve can be trusted. Mr. Lewis has told investigators for raw(a) York Attorney General Andrew Cuomo that in December Mr. Paulson threatened him not to cancel a bring off to buy Merrill Lynch. BofA had discovered billions of dollars in undisclosed Merrill losses, and Mr. Lewis was considering invoking his rights under a material adverse suss out clause to kill the merger. moreover Washington decided that Americas financial system couldnt withstand a Merrill failure, and that BofA had to risk its own solvency to nevertheless it. So then-Treasury Secretary Paulson, who says he was acting at the advocate of Federal Reserve head Bernanke, told Mr.

Lewis that the feds would fire him and his board if they didnt complete the deal. Mr. Paulson told Mr. Lewis that the government would provide cash from the Troubled Asset ministration Program (TARP) to help BofA bow out Merr ill. But since the government didnt fate to! reveal this new federal investment until after the merger closed, Messrs. Paulson and Bernanke rejected Mr. Lewiss request to have got their commitment in writing. We do not take a disclosable event, Mr. Lewis says Mr. Paulson told him. We do not want a public disclosure. hypothesize what would happen to a CEO who said that. After acquire the approval of his board, Mr. Lewis executed the Paulson-Bernanke order without informing...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay