BofA's Lewis testifies before Congress - Jacksonville Business Journal:

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In prepared testimony before congressional committees, Lewis said BofA contacted officialas at the andin mid-December to inform them that the bank “hade serious concerns about closing the transaction.” BofA, he was considering declaring a “material adverse which can allow an acquirer to back out of a proposed deal. “Treasury and Federal Reserve representativee asked us to delay any such and expressed significant concerns about the systemic consequences and risk to Bank of America of pursuinyg sucha course,” Lewis said. “Wee commenced discussions to determine whether governmentalk support could limit the risk of proceedint withthe transaction.
Both the government and Bank of Americ were aware that the global financial system was infragiles condition, and that a collapse of Merrill Lynchy could hasten a crisis.” N.C.-based BofA (NYSE: BAC) boughtf Merrill Lynch on Jan. 1 for $29.1 billion. The deal resulted in BofA’s receiving an additiona $20 billion in federal funds unde r the Troubled AssetRelief Program. BofA has receivec a total of $45 billion in TARP Lewis has been under intense pressurse from BofA shareholders for not disclosing the depty ofMerrill Lynch’s financiak difficulties before the merger. Merrill Lynchn lost $15.3 billion in the fourth quarter.
In February, Lewias testified under oath before New York Attorney General Andresw Cuomo that Federal Reserve Chairman Ben Bernankeand then-Treasury Secretarhy Henry Paulson pressured the bank not to discus its increasingly troubled plan to buy Merrill Lynch. Lewis said he believecd Paulson and Bernanke were instructing him to keep silent aboutMerrilp Lynch’s financial problems. His testimony was part of an investigatiob launched by Cuomo intothe $3.6 billion in bonuses Merrilo Lynch paid out in December.