Disclosures from Bernanke at the Federal Reserve?
Federal Reserve Chairman Bernanke, could face a subpoena from lawyers, representing shareholders of Bank of America; shareholders who want to hear what the chairman said to Ken Lewis, then CEO of Bank of America, prior to the acquisition of Merrill Lynch by BofA.
Although it's uncommon for a top regulator to be questioned in a civil lawsuit, this is an opportunity to add some visibility and accountability to the Federal Reserve. Given the very high profile nature of the conversation, the financial turmoil at the time and the subsequent $20 billion in aid given to Bank of America just before their $19.4 billion acquisition of Merrill Lynch, it seems appropriate and natural for shareholders to want clarity on the machinations of the deal.
Increased disclosures at the Federal Reserve would be a good thing overall - their portfolio is massive - and the bank holds enormous sway on global markets. This particular conversation or series of conversations between Mr. Bernanke and Mr. Lewis may become one more catalyst to holding the Federal Reserve accountable and bring about greater transparency. Let's hope so.
www.iangilyeat.com
Although it's uncommon for a top regulator to be questioned in a civil lawsuit, this is an opportunity to add some visibility and accountability to the Federal Reserve. Given the very high profile nature of the conversation, the financial turmoil at the time and the subsequent $20 billion in aid given to Bank of America just before their $19.4 billion acquisition of Merrill Lynch, it seems appropriate and natural for shareholders to want clarity on the machinations of the deal.
Increased disclosures at the Federal Reserve would be a good thing overall - their portfolio is massive - and the bank holds enormous sway on global markets. This particular conversation or series of conversations between Mr. Bernanke and Mr. Lewis may become one more catalyst to holding the Federal Reserve accountable and bring about greater transparency. Let's hope so.
www.iangilyeat.com
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