Does the government have power to force corporations to buy failed companies? In an account released by New York Attorney General Andrew Cuomo the former United States Treasury Secretary Henry Paulson and the Federal Reserve Chairman Ben Bernanke threatened to remove Ken Lewis, president of the Bank of America and the entire board of directors if they refused to purchase Merrill Lynch late last year.
“Executive Ken Lewis said that the Treasury and the Federal Reserve threatened to remove him and the firm's board of directors if the company did not go through with a planned acquisition of Merrill Lynch late last year. According to the minutes of a December 22 meeting, which were released Thursday by New York Attorney General Andrew Cuomo, the government made the threat when the bank was considering invoking a “material adverse change” clause to quash the deal after it became clear Merrill’s finances were collapsing. According to the minutes, Lewis, told the board that, “the Treasury and Fed stated strongly that were the corporation to invoke the material adverse change clause in the merger agreement with Merrill Lynch and fail to close the transaction, the Treasury and Fed would remove the board and management of the corporation” said a report in Marketwatch.com.
This is a serious accusation and should lead to a criminal investigation of all parties involved. Since when can the US Treasury and Federal Reserve, Henry Paulson and Ben Bernanke specifically, violate the rule of law by threatening private corporations to purchase failed companies? You might recall Merrill Lynch lost over $15 billion in the fourth quarter of 2008. Now this begs to ask if the forced purchase of Merrill Lynch caused Bank of America to need a Federal bailout with taxpayer dollars.
Scripture says, “How is the faithful city become an harlot! It was full of judgment; righteousness lodged in it; but now murderers. Thy silver is become dross, thy wine mixed with water; thy princes are rebellious and companions of thieves; every one loveth gifts and followeth after rewards…: (Isaiah 1:21-23).
Folks, we need to pray that corruption at every level be exposed in our country and the criminals prosecuted and thrown in jail. Let freedom ring!
Judge Andrew Naplitano Shares How We Can Re-establish Freedom in America Again. He is a freedom fighter, a liberty-seeker, and a straight shooter. He’s the youngest life-tenured Superior Court judge in the history of the State of New Jersey, the host of Fox’s Freedom Watch show, and the author of four books, including “Constitutional Chaos,” “The Constitution in Exile,” “A Nation of Sheep” and his latest effort “Dred Scott’s Revenge.”