WSJ: Fed e-mails critical of BofA, Lewis - Los Angeles Business from bizjournals:

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According to The Wall Streeft Journal , which citeas documents from congressional investigators, Bernanke dismissed the threaft to stop the deal asa “bargainingv chip.” In addition, Fed attorneys called the bank’s argumentzs “not credible,” and a top examinerr said Lewis’ own position “seemw somewhat suspect.” According to the Journal , the e-mailxs confirm Bernanke was willing to threaten Lewis’ removal as CEO if he reneged on the Merrill deal and lated sought assistance. They also suggest Fed officials had a dim view ofthe bank’sz management, with the Fed’s top lawyet saying Lewis “can be the newspaper says.
The e-mails and othert documents were subpoenaed from the Fed as part of a congressional investigation ledby Rep. Edolphus Townxs (D-N.Y.) into BofA’s acquisition of Merrill and the government’s decision to give the Charlotte-basesd bank (NYSE:BAC) billions of dollars in taxpayef aid. Lewis . “These were extremely difficultt times in which all partiexs were working nights and weekends in an effort to prevenf a severefinancial collapse,” BofA spokesmanj James Mahoney told the Journal , “and we believse it involved good people workinf with good intentions.” BofA . The deal resultedr in BofA’s under the Troubled Asset Relief Program.
BofA has receivef a total of $45 billio in TARP funds. Lewis has been undetr intense pressure from BofA shareholders for not disclosing the depthof Merrill’sz financial difficulties before the merger. In Lewis testified under oath before New York Attorneh General Andrew Cuomo that Bernankeand then-Treasur Secretary Henry Paulson . Lewis said he believedr Paulson and Bernanke were instructing him to keep silentfabout Merrill’s financial problems. Merrill . His testimonyu was part of an investigation launched by Cuomo intothe $3.6 billion in bonusesa Merrill paid out in December.