CHARLOTTE, N.C. — New York’s attorney general said Thursday government officials pressured Bank of America chief executive Ken Lewis to complete the bank’s purchase of Merrill Lynch.
A letter from New York State Attorney General Andrew Cuomo’s office sent to congressional leaders and federal regulators said Lewis testified in February that former Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke threatened to oust Bank of America’s management if the bank tried to back out of buying Merrill Lynch.
The government helped orchestrate the acquisition of the investment bank by Bank of America over the same weekend in September that another investment bank, Lehman Brothers, went under.
Bank of America completed its purchase of New York-based Merrill Lynch on Jan. 1.
The bank has repeatedly defended its acquisition amid revelations of huge losses at Merrill Lynch before the deal was completed.
“We believe we acted legally and appropriately with regard to the Merrill Lynch transaction,” Bank of America spokesman Scott Silvestri told the AP on Thursday.
Representatives from the Treasury Department had no immediate comment.
