So here's Ken Lewis, CEO of Bank of the USA, saying that he really wanted to tell his shareholders (That's you and me folks) that his bank was bust. The only problem was that non-elected government bureaucrats Ben Bernanke and Henry Paulson didn't want him to. This is really astounding.
The SEC is always preaching about how these guys must tell the truth and fully disclose material facts about their public companies. Yet, in this case, the government forbade it. They threw the BofA shareholders under the bus to accomplish their political objectives and forced Mr. Lewis to violate his fundamental duty to his shareholders.
What really bothers me is how little regard the government has for shareholder rights. These corporations provide our jobs, pay our taxes, and drive innovation in our modern society.
Christopher
Lewis Testifies U.S. Urged Silence on Deal
Bank of America Chief Says Bernanke, Paulson Barred Disclosure of Merrill Woes Because of Fears for Financial System
By LIZ RAPPAPORT
Federal Reserve Chairman Ben Bernanke and then-Treasury Department chief Henry Paulson pressured Bank of America Corp. to not discuss its increasingly troubled plan to buy Merrill Lynch & Co. -- a deal that later triggered a government bailout of BofA -- according to testimony by Kenneth Lewis, the bank's chief executive.
Mr. Lewis, testifying under oath before New York's attorney general in February, told prosecutors that he believed Messrs. Paulson and Bernanke were instructing him to keep silent about deepening financial difficulties at Merrill, the struggling brokerage giant. As part of his testimony, a transcript of which was reviewed by The Wall Street Journal, Mr. Lewis said the government wanted him to keep quiet while the two sides negotiated government funding to help BofA absorb Merrill and its huge losses.
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