"Bigger Than Watergate?"

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pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2258
"Bigger Than Watergate?"

Hi Folks-

   I just read this story, "Bigger than Watergate", at http://www.safehaven.com/article-13277.htm.  The author is Olivier Garret, CEO of Casey Research.  I am not familiar with his writing, so I don't know if this is of legitimate interest as a news item that is going to break, or if it is being hyped up.  Maybe others here are more familiar with his writing/reputation. 

   Here's a clip:

Reportedly, Bill O'Reilly referred to a recent story out of our nation's capital as "bigger than Watergate."

Whether the story is bigger than Watergate or not, it is definitely a scandal of huge proportions.

To sum it up, on April 23, 2009, New York Attorney General Andrew Cuomo sent a letter to Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs Chris Dodd; Chairman of the House Financial Services Committee Barney Frank; SEC Chairwoman Mary Schapiro; and Chairwoman of the Congressional Oversight Panel Elizabeth Warren.

The letter outlined how former Treasury Secretary Paulson and Fed Chairman Ben Bernanke forced Bank of America's acquisition of Merrill Lynch - even though Bank of America CEO Ken Lewis and the board of directors tried to pull the plug on the deal after it turned out that Merrill Lynch was far deeper in debt than it had admitted.

In the words of Attorney General Cuomo himself:

"Immediately after learning on December 14, 2008 of what Lewis described as the "staggering amount of deterioration" at Merrill Lynch, Lewis conferred with counsel to determine if Bank of America had grounds to rescind the merger agreement by using a clause that allowed Bank of America to exit the deal if a material adverse event ("MAC") occurred. After a series of internal consultations and consultations with counsel, on December 17, 2008, Lewis informed then-Treasury Secretary Henry Paulson that Bank of America was seriously considering invoking the MAC clause. Paulson asked Lewis to come to Washington that evening to discuss the matter.

Bank of America's attempt to exit the merger came to a halt on December 21, 2008. That day, Lewis informed Secretary Paulson that Bank of America still wanted to exit the merger agreement. According to Lewis, Secretary Paulson then advised Lewis that, if Bank of America invoked the MAC, its management and Board would be replaced."

pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2258
Re: "Bigger Than Watergate?"

 I should have done a search and checked before I posted this.  Davos has had a few different posts on this topic already, prior to the article I referenced that came out today.

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