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U.S. markets recover from steep losses
WASHINGTON, June 10 (UPI) -- A congressional committee has subpoenaed the U.S. Federal Reserve to obtain information about the sale of Merrill Lynch to Bank of America.
The House Oversight and Government Reform Committee issued the subpoena after the Fed balked at supplying emails and other notes related to the acquisition, which Bank of America Chief Executive Officer Ken Lewis said was made under pressure from bank supervisors, The Washington Post reported Wednesday.
In a prepared statement, Lewis said, "Treasury and Federal Reserve representatives … expressed significant concerns about the systemic consequences and risk to Bank of America" regarding his reservations about obtaining Merrill Lynch.
Darrel Issa, R-Calif., called the acquisition of Merrill Lynch "a shotgun wedding pushed by the Federal Reserve."
A Fed spokesman said the bank was already cooperating with congressional investigators, allowing them to review 6,000 pages of documents related to the acquisition, which closed in January.
A key factor in the deal is whether or not federal supervisors advised Lewis to keep his reservations about the purchase a secret from investors.
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