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Thursday, June 11, 2009

Bank of America's Ken Lewis Sticks By The Decision To Buy Merrill Lynch

"Even six months later, it is easy to forget just how close tot he brink our system came," Lewis said on his prepared remarks to lawmakers.

From CNNMoney.com: BofA's Ken Lewis defend Merrill deal

Bank of America chief Ken Lewis reiterated Thursday that pressure from federal regulators played an important part in the company's decision to continue with its planned acquisition of Merrill Lynch late last year.

Testifying before the House Committee on Oversight and Government Reform, Lewis said Bank of America nearly backed out of the deal after learning the scope of the losses at brokerage giant Merrill Lynch. But he added that the promise of additional government aid and potential threat to the U.S. financial system prompted the Charlotte, N.C. based lender to change its mind.

Looks like it's Lewis' word against Paulson and Bernanke's. What do you think actually happened with this deal?

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