When Bank of America’s chief Kenneth Lewis tried to walk away from the deal for Merrill Lynch due to $15 billion in unclaimed, bad debt, the Federal Reserve threatened to replace him, the board, and management at BoA if he did so. According to his testimony, he knew the deal was bad for shareholders–since they would see $15 billion evaporate as soon as he signed, but he succumbed to the pressure.
Naturally, the Fed denies any wrongdoing. According to one article, a spokesman for the Fed said, “By referring to the Fed’s supervisory powers, Paulson intended to deliver a strong message reinforcing the view … that it would be unthinkable that Bank of America take this action for which there was no reasonable legal basis and which would show a lack of judgment.”
Call me a conspiracy loon if you will, but more and more, I am beginning to think the current economic situation is fabricated. Just look how swiftly everyone charged in, stealing our liberties and forever altering our mode of government. In a matter of a few months we went from a (basically) democratic government to a democratic socialism…heavy on the socialism and light on the democracy. The worst thing is, millions of Americans have welcomed this ushering in of socialism. Bush started it and Obama packaged it up as some shiny change we can believe in.
Forget investigating the lawyers and CIA. Let’s start investigating the Fed, Congress, Carter, Clinton, Bush, and Obama for their parts in fiddling with the economy and bringing us this “crisis.” For some reason, Rahm “the fish man” Emmanuel’s words keep ringing in my ear. Something about never letting a good crisis go to waste and doing things you would never have been able to do otherwise.