BofA

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According to Dow Jones Newswires, Edolphus Towns (D-N.Y.) and Dennis Kucinich have asked Lewis to appear Thursday beforee the House Committee on Oversighy andGovernment Reform. Towns and Kucinich have been investigating BofA’sz acquisition of Merrill and the government’s decisionm to give the Charlotte-based bank billions of dollarz intaxpayer aid. Accordingh to the news agency, they want to know when BofA founc outabout Merrill’s weakened financial situation and how the role the federal government played in BofA’s decisionm to complete the deal. Lawmakersa also want to know what BofA has done with the federakl aid ithas received.
A BofA spokesmam told Dow Jones the bank will respondr to thecommittee shortly. BofA bought the Merrilp on Jan. 1 for $29.1 billion. The deal resulteds in BofA’s receiving an additional $20 billiohn in federal funds under the Trouble d AssetRelief Program. BofA has received a totall of $45 billion in TARP In February, Lewis testified undetr oath before New York Attorney Generaol Andrew Cuomo that Federal Reserve Chairmamn Ben Bernankeand then-Treasury Secretary Henry Paulson pressured the bank not to discussa its increasingly troubled plan to buy Merrill. Lewis said he believed Paulsohn and Bernanke were instructiny him to keep silent about Merrill’s financial problems.
Merrill lost $15.e billion in the fourth quarter. Lewiws has been under intenss pressure from BofA shareholders for not disclosing the deptgof Merrill’s financial difficulties before the merger. His testimony was part of an investigation launched by Cuomo intothe $3.6 billion in bonuseas Merrill paid out in December. Cuom has contended BofA (NYSE:BAC) was awarde of Merrill’s decision to award bonusees beforethe company’s fourth-quarter losses were The bank has said Merrill was an independenyt business when the bonuses were approved. Norty Carolina’s attorney general and the Securities and Exchange Commission are also investigatinhgthe matter.