Making Their Move against the Fed: Bernanke under fire on BofA/Merrill: Email trail…

Okay Ben is under attack, and like it or not, with him the independence of the Federal Reserve. These emails were  leaked to CNBC by Congressional Investigators.

Our previous posts on Thain/Lewis here and here and here

Vodpod videos no longer available.

Insight on the emails leading up to the Bank of America-Merrill deal, with CNBC’s Scott Cohn; Joe diGenova, diGenova & Toensing; and CNBC’s Rick Santelli, Charlie Gasparino & Larry Kudlow.

Team TOTUS would like nothing better than to get Larry Summers in there in 2010, and Congress is lending a helping hand, issuing subpoenas and scheduling hearings, taking testimony from Ken Lewis. AG Cuomo was all over this commensurate with his role as NY AG in training to be Governor…this is going nowhere good…

Happier Days

Happier Days

MiM are shareholders, we are in no way unbiased on the BofA/Merrill deal, but we also DO NOT WANT the Fed under TOTUS control, then we will NOT tighten as needed (Do it now! do it now! .25%!) and we will not have a Volcker like person in there raising rates despite enormous pressure from GHW Bush coming into the elections…

April 23, 2009:

Ben was very careful in how he worded his denial of telling Lewis to not disclose material info to shareholders about Merrill losses before the merger vote when he was asked by Congress..

However, emails from Fed Reserve members seem to imply the threat was a heavy one, and you KNOW Hank Paulson leaned on Ken HARD at that table while Ben likely sat quietly and echoed key Hank positions, ie the fragility of the markets…yada yada yada..

...misty watercolored memories...

...misty watercolored memories...

Didn’t we all KNOW this already? This is more of the same. Hank made the banks take TARP to cover for CITI’s MASSIVE losses which were IMO partly Timmeh Geithner’s fault as he, as head of NY Fed, was their chief monitor….Wells Fargo may have been the only CEO at that meeting that spoke up, but ALL of them took the TARP..

The difference for Ken Lewis is his Fiduciary Duty to the shareholders is CLEARLY not met when he backed down and didn’t disclose those losses..he had a MAC out option (Material Adverse Change) , he buckled and he failed in his duty. Had that been Jamie Dimon, Jamie would have killed the deal.

Jamie Dimon, always ready to rumble for the shareholders...

Jamie Dimon, always ready to rumble for the shareholders...

But for Congress to claim SHOCK at these strong-arm tactics is simply another Gambling at Rick’s Place moment in a long line (pre and post AIG bonus fiasco)…Congress couldn’t give a rats ass about BofA shareholders getting screwed by a government agent, just look at Chrysler and GM!

All in the Family

All in the Family

And as for Bernanke and Paulson, I remember Pelosi grinning from ear to ear when Hank got on bended knee to her to get TARP done…and all and sundry, Barney Frank in particular,  talking about what a great relationship they had with Ben and Hank and how they trust Hank and on and on….

One Big Happy Family

One Big Happy Family

No, this is about taking Bernanke down to make sure Summers is in and they can continue on their merry way without the interference of an independent Federal Reserve to cramp their style…

I am praying that the bond vigilantes that annoyed the hell out of me in 1993 come ROARING to the economic rescue if and when Summers’ fails to withdraw that excess liquidity at an inconvenient moment for Team TOTUS….

The waaaayyyyy we werrrrrreeeee….

memmmmmmreeeeeeees....

memmmmmmreeeeeeees....

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June 10, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, TARP, Wall St.

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