Rise and Fall of the Bull Empire
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Bank of America CEO Ken Lewis has testified that former Treasury Secretary Hank Paulson and current Fed Chairman Ben Bernanke essentially forced him to acquire Merrill Lynch despite evidence of its growing losses. Even though this was certainly done with "America's best interests" in mind, it's still a bit troubling. It's especially troubling because in 2009, 6months after the acquisition, John Thain, Merill's CEO at the time of the crisis and the take-over was forced out for hiding Merrill's true losses from Bof A and its own shareholders.
Read MoreBanks, Borrowers and MONEY
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“If you owe your bank a hundred pounds, you have a problem; but if you owe a million, it is the bank that has a problem” John Maynard Keynes When a borrower gets into financial difficulties, a problematic situation may arise for the lender bank whereby it has to take certain measures to mitigate the risk for credit losses due to the expected inability of the borrower to continue...
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