The Bank of America/Merrill deal is very questionable to say the least.
By Daniel at 16 July, 2009, 7:25 am
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It was announced around the same time that Lehman filed for bankruptcy (in the middle of September) but wasn’t cleared until days after TARP was announced on 10/14/08.
Why push the deal, when Paulson could simply save Merrill as a stand-alone under TARP? Merrill was also in line to receive CDS settlements from AIG for 100 cents on the dollar. From my understanding, the BAC deal was contingent upon the approval of TARP and guaranteed funds from the taxpayer. Warren Buffett’s private investment in Goldman was contingent upon the approval of TARP as well. This whole thing stinks to high heaven, and Paulson looks to be in clear violation of securities fraud and conflict-of-interest statutes.
TARP was a big fat stinky piece of government cheese, that attracted the most disgusting rats known to man. Too bad it wasn’t a trap set up by the DOJ. The evidence of fraud and corruption is obvious, but hidden behind the veil of “systemic risk”.
If our lawmakers are unable to serve indictments in this deal, then it would definitely identify them as something other than public servants.
Insightfool
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