The biggest sticking point concerned whether or not Bernanke threatened to force out Lewis of Bank of America. The bank has approached American officials in mid-December on whether to abandon the deal to buy Merrill Lynch, which had been signed at the height of the crisis in September. In the end, the government arranged a rescue package of U.S. $ 20 billion for the bank to cover the mounting losses at Merrill, but not before some high level discussions. This affected the credit worthiness of the entire nation according to the currency trading for dummies book which has always maintained that government bail outs are bad for currency valuations.
“Mr. Lewis said that personally to resign or withdraw from the board of Bank of America,” he asked the committee chairman, Democratic Rep. Edolphus Towns.
“No,” replied Bernanke.
An email written on May 20 by Richmond Fed President Jeffrey Lacker – part of a series of messages obtained by the committee – recounts a conversation between Bernanke and Lacker in which he planned to tell the Bank of America that “the board was already “If they liquidate the agreement and then needed more government help.
Pressed on the topic, Bernanke said he did not make such a comment to Lewis and did not remember that part of the conversation with Lacker.
Republican Rep. Dan Burton, a former chairman of the committee, said that people usually use this verbiage to prevent perjury. “You sure you can not remember?”
“I’m sure I can not remember,” said Bernanke.