In light of last weeks' memo to Congress by NY Attorney General Andrew Cuomo's, it's obvious by now that no one can trust anything said by the Federal Reserve, the U.S. Treasury, and Bank of America's CEO and Board. Jonathan Weil, a Bloomberg columnist, states the case well: One Nation, Under Banks, With Justice for No One.
The story of the Fed forcing Bank of America to takeover Merrill Lynch is collectivist policy-making in plain daylight. For the greater good of society, they assure us, the Merrill Lynch deal had to go through. What about BoA shareholders? Tough luck. Is it not obvious from Cuomo's memo, and Ken Lewis's deposition, that Federal Reserve Chairman Ben Bernanke, former U.S. Treasurer Hank Paulson and current U.S. Treasurer Timothy Geithner, were complicit in achieving a desirable end through coercion which resulted in a violation of securities law? What about CEO Ken Lewis and the Board's agreement to stay mum? Legalities aside, such policies are poison to relationships of trust, which are crucial in credit markets.
Attention Federal Reserve: You can inflate the money supply and infuse fiat money, but you can't inflate and infuse trust.
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More commentaries:
- Paulson's 'Gift' to Lewis Delievered at Gunpoint
- Why Did Ken Lewis Go Along with the Cover-Up?
- Lewis Testifies U.S. Urged Silence on Deal.
- Geithner, Member and Overseer of Finance Club - NYT
- Emanuel says Obama has '100% Confidence' in Fed Chief Bernanke
- SEC Omission From BoA Talks 'Troubling', Chief Says
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