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MONDAY, NOVEMBER 23, 2009
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Paulson: BofA-Merrill Deal Saved US From 'Great Peril'

Actions saved nation from 'great peril,' he says

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(Newser) – Former Treasury Secretary Henry Paulson says his role in Bank of America’s acquisition of Merrill Lynch was appropriate and necessary, MarketWatch reports. “I am confident that our responses were substantially correct and that they saved this nation from great peril,” Paulson told a House oversight committee today in response to concerns he and the Fed ordered the deal against the will of BofA’s CEO.

Some Democratic lawmakers have questions for that CEO, Ken Lewis, too. Committee chair Edolphus Towns says he thinks Lewis was trying to “shake down” federal officials by agreeing to the deal in exchange for $20 billion in bailout funds. “Was Bank of America really forced to go through with this deal, or was this an old-fashioned shakedown?” Towns asked.

Then-Treasury Secretary Henry Paulson participates in a discussion about markets and climate change in Washington, Jan. 12, 2009.
Then-Treasury Secretary Henry Paulson participates in a discussion about markets and climate change in Washington, Jan. 12, 2009.   (AP Photo)
Bank of America CEO Ken Lewis arrives at the office of New York Attorney General Andrew Cuomo, Feb. 26, 2009.
Bank of America CEO Ken Lewis arrives at the office of New York Attorney General Andrew Cuomo, Feb. 26, 2009.   (AP Photo)
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4 comments
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TerrifiedCitizen
Jul 16, 09 12:19 PM CDT
Oh yeah Paulson, you're a real honest to goodness hero and savior. Reply
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chas_m
Jul 16, 09 4:43 PM CDT
I don't think much of Mr Paulson, but on this occasion he may well be right, at least from a psychological perspective. I often wonder how much worse the economy would have gotten if the dominance of "Great Depression II" stories dominating the news had continued instead of getting pushed off the front page thanks to the bailouts. The above should NOT be construed as defense of or endorsement of the bailouts. Reply
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Karl
Jul 16, 09 10:29 PM CDT
He's a nasty, ugly looking old man, and a goddamned liar on top of that. And he always looks as though he's chewing a mouthfull of shit. Reply
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Karl
Jul 16, 09 10:31 PM CDT
May god save us ALL from those assholes. And that's saying a lot, people- I'm ATHEIST! Reply
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