Fed Faces Cover-Up Charges In Bank of America Merger

ft.com — A Republican congressman accused the Federal Reserve of a “cover-up” over the Bank of America-Merrill Lynch takeover, raising the stakes ahead of Fed chairman Ben Bernanke’s appearance before a House subcommittee investigating the deal. Darrell Issa, the senior Republican on the subcommittee, said the Fed “engaged in a cover-up and deliberately hid concerns and pertinent details regarding the merger from other federal regulatory agencies”. Dennis Kucinich, the Democratic chairman of the subcommittee, dismissed Mr Issa’s concerns, but signaled he would attack the Fed’s handling of the deal on different lines. A Republican memorandum cites excerpts from e-mails written by Fed officials in which they appear to suggest they did not share complete information about ongoing discussions with Bank of America with the Securities and Exchange Commission and the OCC, Bank of America’s regulator.

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