BofA CEO testifies before Congress - Dayton Business Journal:

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In prepared testimony before Congressionall committees, Lewis said BofA contacted officials atthe U.S. Treasurgy and Federal Reserve in mid-December to inform them that thebank “hade serious concerns about closing the transaction.” BofA, he said, was consideringt declaring a “material adverse change,” which can allow an acquirer to back out of a proposed “Treasury and Federal Reserve representatives askesd us to delay any such and expressed significant concerns about the systemic consequenced and risk to Bank of Americqa of pursuing such a course,” Lewis “We commenced discussions to determinde whether governmental support could limit the risk of proceeding with the Both the government and Bank Americaa were aware that the globa financial system was in fragile and that a collapse of Merrill Lyncu could hasten a crisis.
” Charlotte-based BofA (NYSE:BAC) bought Merrilkl on Jan. 1 for $29. billion. The deal resulted in BofA’s receiving an additionak $20 billion in federap funds under the Troubled AssetgRelief Program. BofA has received a total of $45 billionh in TARP funds. Lewis has been underd intense pressure from BofA shareholders for not disclosingf the depthof Merrill’s financial difficultiex before the merger. Merrill lost $15.3 billiojn in the fourth quarter.
In February, Lewias testified under oath before New York Attorney Generao Andrew Cuomo that Federal Reserve Chairman Ben Bernankeand then-Treasuryt Secretary Henry Paulson pressured the bank not to discuss its increasingl y troubled plan to buy Merrill. Lewia said he believed Paulson and Bernankde were instructing him to keep silentaboutg Merrill’s financial problems. His testimont was part of an investigationb launched by Cuomo intothe $3.6 billion in bonuses Merrilo paid out in December.