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Top US lawyer urges Merrill crisis probe
24.04.09
Wall Street's top lawman is urging senators and congressmen to investigate whether ex-Treasury Secretary Hank Paulson and Federal Reserve chairman Ben Bernanke misled shareholders during the Merrill Lynch crisis.
Andrew Cuomo, the New York Attorney General, has sent documents to officials in Washington following testimonies by Bank of America chief executive Ken Lewis who has alleged he was instructed to cover up Merrill's financial troubles. Merrill then reported a $21billion (£14.3 billion) black hole in its accounts and rescuer BoA was forced to apply for a bailout.
Cuomo is to accuse Paulson and Bernanke of meddling in or seeking to influence the management of BoA and preventing the access of shareholders to information.
"What we have uncovered about the BoA acquisition of Merrill raises fundamental questions about the interaction of regulators and those they regulate," Cuomo said. An investigation could be launched by Senate banking committee chief Christopher Dodd who is said to be "deeply concerned".
