By MICHAEL GRAY
According to BofA chief Ken Lewis’s testimony, Ben Bernanke and Hank Paulson, suspended all financial reporting rules to BofA shareholders by the CEO.
Lewis in a deposition before NYS AG Andrew Cuomo’s office said he was told by Bernanke and Paulson the they wanted no public disclosure on the Merrill Lynch deal for fear of a further financial collapse due to the train wreck that was Merrill’s balance sheet.
The next question would be what other regulation or laws were suspended during this economic crisis?
Did Paulson and Bernanke–– through the Plunge Protection Team (President’s Working Group on Financial Markets) –– speak with market participants on mergers and bankruptcies prior to public disclosure? I would have to say yes.
Many weekends in October, November and December there were meetings at Tim Geithner’s NY Fed offices to repair the week that pasted. Market manipulation on credit derivatives during this period was the ruination of AIG.
I have written in the past about that there was a threat in September of martial law in the days after Lehman Bros’s collapse. That was just before the feds bailed out the money market with guarantees so the market would not crash.
The propping up of AIG is probably another creation of Ben and Hank to have a second access point to bail out the banks should it be needed.
I am sure this is the tip of the iceberg as far as manipulation and suspension of rules were used in the name of “national security.” That is the defense Ben and Hank will probably use should this amount to any prosecution.
For more on Wall and Washington and the economy see: http://mgray12.wordpress.com