HUGE SCANDAL: Paulson and Bernanke forced BoA to fraudulent merger!

Finally some of the scumbags are being exposed and squirming like the filthy maggots they are.

I'll give you the link to read for yourself below, but here's the story in a nutshell:

Last year, it was decided that Bank of America would do a merger with Merrill Lynch, which was near collapse.

A few weeks AFTER Merrill Lynch had disclosed all their losses -- to the tune of, like, $7 billion -- and AFTER the merger agreement was already signed, it turned out that they hadn't disclosed everything.

Within eight days in December, ML added billions of dollars in losses to the tab, until they reached $13 billion or so.

When Bank of America realized the scam that was going on, they considered to invoke the so-called MAC clause (material adverse event) to backpedal from the fraudulent merger to protect their shareholders.

Ken Lewis, BoA's CEO, told Paulson and Bernanke about it -- and here's the kicker:

Paulson and Bernanke threatened Lewis that, if BoA didn't go through with the merger -- and keep a lid on it -- they would fire the entire BoA board of directors.

So the board caved, the merger went through, and neither the public nor the SEC nor the BoA shareholders were informed about what was going on.

Here's the link.

This is a huge scandal -- and might well prove to be the nail to Bernanke's coffin (Paulson is in it too, but he can't lose his job as secretary of the Treasury anymore, he already has ).

Anyhow, this is a real biggie... I'll keep following what transpires...

[edit on 24-4-2009 by sylvie]

[edit on 24-4-2009 by sylvie]

No responses because it can't be twisted to implicate Obama or Bill Clinton.

It is hardly surprising anymore that this goes on under everyones noses - people don't care much about it or think to look for it. Mainstream people still won't ask the real questions for a long time, if ever. It's great to see this coming out, though I do think as this stuff leaks more and more, it could possibly start a tide. We can still be hopeful.

What will it take..? No pizza and beer?

Down the rabbit hole we go...

[edit on 24/4/09 by GhostR1der]

[edit on 24/4/09 by GhostR1der]

well we all pretty much knew it was a forced marriage and i had a pretty good feeling that Merrill Lynch's reported losses before the merger was bogus i figured they were triple of what was reported and could still be since we common folk won't get the real answers.

don't count on the NY attorney general getting to far with this case though. HE had to notify the corrupt bastards in congress that helped this mess along plus the fed is exempt from everything. this case will quietly disappear, and if not the NY attorney general will have a sudden heart attack, or commit suicide.

Bernanke infuriates me more than any other individual currently at the heart of the financial crisis. The man's arrogance is astonishing, and I can't decide if he is genuinely clueless and incompetent or if the ill-effects of his actions are intentional. Regardless, I hope he sees his professional destruction in short time.

This goes through both the Bush and Obama administration.

They know damn well what is happening...and if they don't...then that's a HUGE problem because they are/were PRESIDENTS!

If Bernanke knows...Geithner knows....and if Geithner knows...Obama SHOULD know.

Anyone else getting sick yet?

It's a giant pyramid of scandal, theft, and lies...and it seems to infiltrated all levels of government.

reply to post by David9176


Honestly man Geithner doesn't know his arse from a whole in the ground. he claims he didn't know anything about AIG but since he was the new york fed chairman he knew exactly what was going on from the beginning.

Geithner, Paulson, Bernanke, Obama, Bush, Dodd, Frank, Pelosi, Reed, etc all think we americans have short memory and that we will buy their lies over and over. the whole bunch lies and say/said they had no clue the economy was going to hell in a hand basket. But they are the reason the banks got a free pass to do whatever they wanted.

Geithner is hoping we forgot he was the NY fed chairman and negociated most of the deals between the banks and the fed and the government.

[edit on 4/24/2009 by Mercenary2007]

Um -wow
What can anyone say to that.....

look at todays outcome of this

April 24 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth D. Lewis may face scrutiny by the U.S. Securities and Exchange Commission for failing to disclose mounting losses at Merrill Lynch & Co. because of pressure from federal regulators to complete the takeover.

“We have been actively reviewing the disclosure surrounding the merger between Bank of America and Merrill Lynch,” said agency spokesman John Nester. “The issues identified in New York Attorney General Andrew Cuomo’s letter are part of our review.”

Source

so Ken Lewis threatened to use the MAC clause of the merger agreement pissed off the Fed the whole deal goes public so the Fed sicks the SEC on Lewis.

who wants to bet he'll be then next CEO to eat a bullet?

Oh geez... the guy who actually wanted to do the right thing is biting the dust for it. Sometimes I wonder whether there's ANY justice left in this world...

reply to post by sylvie


I just got done reading the whole document. Your summation is dead on. What a joke our government has become.

With everything that's been going on I'm almost embarassed to say that I'm American. These people have absolutely no shame. I hope this document comes to light to the media and something is done about this. But I'm not going to hold my breath.

This was already posted yesterday

www.abovetopsecret.com...'

Every day there is another nail in the coffin of what once was proud America.

Can I suggest, with all due respects, that unless my American brothers and sisters are going to do anything about all this fraud, lies, theft and dis-respect of the American citizen, that you might as well say that ATS is nothing more than a medium for gossiping for people who know whats going on and yet do nothing about it.

When will America wake up and grow up !


Respects

The rats that gnawed a hole in the hull fight as the ship goes down.

New York Attorney General Andrew Cuomo has released a letter with accompanying addenda that he sent to key Washington officials. In it he says that Henry Paulson essentially corroborated Ken Lewis’s testimony concerning the acquisition of Merrill Lynch. Paulson also testified that the threats made to Lewis concerning his replacement should the Merrill deal not be completed were done at the request of Fed Chairman Ben Bernanke.

Paulson Throws Bernanke Under the Bus, Backs Ken Lewis

Makes me wonder. If this sort of thing is going on blatantly in view of the public. Then there has to be an ulterior motive.

They have to know something we don't. And are doing this for a reason.
The only possible thing I can come up with. Is that they know what would happen if this merger didn't go through. And for it to not go through would have been really bad for not just us. But the world.

This isn't a scandal at all. In fact its par for the course.

Not saying this isn't wrong, because it is very wrong. But this is not a scandal. They helped AIG and forced out the CEO and most execs. Same thing at GM. They forced JP Morgan to acquire Bear Stearns. Forced them to acquire WaMu also.

All are wrong, but this story is not a scandal

There are so many posts I want to agree with that I'll just do my own. This is a huge scandal. This is also par for the course. Big government is involved and not just Paulson. Geithner is in the middle of it and therefore obama. This is clearly criminal since it defrauded Bank of America investors out of a great deal of money. Since its financial though both the last administration and the current one use the "public can't know the full truth" argument. Also there are many people who are partisan enough to think "their" party wouldn't be part of such a thing. nonsense.

everyone involved in this should be charged, tried, and if found guilty go directly to jail, including elected officials who were involved in coverups (barney frank) and obviously cabinet officials like Paulson.

I think Paulson's bullying of banks was the beginning of....well something bad. I was going to say beginning of the end but of course that's nonsense. it's been going on for years. we just found out about it. We have utterly biased media, mainly because everything is owned by a handful of conglomerate. We have corrupt elected officials who ignore citizens protests. There is no real reason to expect any kind of action against the crooks. Though I suppose eventually they might make an exciting movie out of it.

Originally posted by mythatsabigprobe
No responses because it can't be twisted to implicate Obama or Bill Clinton.

that, or like me, some of us actually work during the day. but hey, pre-emptive mud slinging is always fun on the interwebs, isn't it?

If Obama isn't going after Bush, Cheney, Rice and the rest of the war criminals, he isn't going to do anything about the treasonous bankers. They have free reign.

This is NOT an isolated incident!!!

Look t the National City Bank acquisition by PNC - another example of government officials collaborating with connected bankers to force sales of "weaker" banks to their rivals. The fed DENIED bailout money to National City forcing them to be taken over by PNC.

Shenanigans all around, when will the people wake up?