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    April 23, 2009
    Was Ken Lewis Warned to Keep Quiet About Merrill?

    There has been no shortage of scandal surrounding numerous aspects of the bailout efforts made last year. From junkets for those receiving taxpayer money to closed door meetings, it seems as though definite favoritism might have been employed in deciding who failed and who survived. (Rumors abound that former Goldman exec, then-Treasury Secretary Henry Paulson, allowed Goldman rival Lehman Brothers to fail on purpose, while bailing out others.)

    The latest scandal is that Bank of America CEO Ken Lewis is alleging that he was forced into silence about Merrill Lynch back when BofA was in the process of acquiring Merrill Lynch in order to keep the company from going the way of Lehman. Stock Market Funding reports on this latest wrinkle:

    Bank of America Chief Executive Kenneth Lewis told the New York attorney general he believed former Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke wanted him to keep quiet about the worsening terms of the bank’s acquisition of Merrill Lynch, according to testimony reviewed by The Wall Street Journal.

    All of this scandal begs the question: What other shenanegans have been going on behind closed doors since all this bailout stuff started in 2008?

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