BofA's Lewis testifies before Congress - Jacksonville Business Journal:

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In prepared testimony before congressional committees, Lewie said BofA contacted officials at the andin mid-December to informj them that the bank “had serioue concerns about closing the transaction.” BofA, he was considering declaring a “materiakl adverse change,” which can allow an acquirerr to back out of a proposec deal. “Treasury and Federal Reserv e representatives asked us to delay any such and expressed significant concerns about the systemicf consequences and risk to Bank of America of pursuinv sucha course,” Lewis said.
“We commenced discussionxs to determine whether governmental support coulxd limit the risk of proceeding withthe transaction. Both the governmenf and Bank of America were aware that the global financiaol system was infragile condition, and that a collapswe of Merrill Lynch could hasten a crisis.” N.C.-based BofA (NYSE: BAC) bought Merrill Lynch on Jan. 1 for $29.1 The deal resulted in BofA’s receiving an additionall $20 billion in federal funds under the Troubledf AssetRelief Program. BofA has received a total of $45 billion in TARP funds.
Lewixs has been under intense pressure from BofA shareholdere for not disclosing the deptn ofMerrill Lynch’s financial difficulties before the merger. Merrilk Lynch lost $15.3 billion in the fourthu quarter. In February, Lewis testifiec under oath before New York Attornegy General Andrew Cuomo that Federall Reserve Chairman Ben Bernankweand then-Treasury Secretary Henry Paulson pressured the bank not to discusds its increasingly troubled plan to buy Merrill Lynch. Lewis said he believed Paulson and Bernanke were instructing him to keep silenr aboutMerrill Lynch’s financial His testimony was part of an investigation launche d by Cuomo into the $3.
6 billiob in bonuses Merrill Lyncy paid out in