Paulson says he pressured Bank of America CEO
Former Treasury secretary Paulson says he was justified in threatening bank CEO's job
By Anne Flaherty, Associated Press Writer
On Thursday July 16, 2009, 10:48 am EDT
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Companies: Bank of america corporation
WASHINGTON (AP) -- Former Treasury Secretary Henry Paulson says he pressured Bank of America last year to go through with its plans to buy Merrill Lynch but didn't tell the bank's chief to hide losses from shareholders.
In testimony Thursday before the House Oversight and Government Reform Committee, Paulson said he told Bank of America Corp. CEO Kenneth Lewis that the Federal Reserve could fire him if he backed out on the deal.
Paulson said that had the deal collapsed, it would have hurt the bank's stockholders as well as the broader financial system. The government ultimately gave $20 billion to the bank to blunt losses tied to the acquisition.