WASHINGTON -- House lawmakers said Tuesday they have subpoenaed the Federal Reserve to hand over e-mails, notes and other documents related to its role in Bank of America Corp.'s acquisition of Merrill Lynch & Co.
In question is whether the Fed, along with the Treasury Department, pressured Bank of America into buying Merrill Lynch. The Fed and former Treasury Secretary Henry Paulson have denied doing so.
"We expect to respond completely and fully as requested beginning today," a Federal Reserve spokesperson said.
Lawmakers on the House Oversight and Government Reform Committee say they are unconvinced that the Fed didn't take an active role in pressuring Bank of America to follow through with the deal and keep quiet about its worsening terms.
The panel, led by Rep. Edolphus Towns, D-N.Y., has been investigating the matter, as well as the $20 billion in taxpayer money provided to complete the acquisition.
"The marriage between Bank of America and Merrill Lynch was a shotgun wedding pushed by the Federal Reserve," said Rep. Darrell Issa of California, the panel's top Republican.
The Wall Street Journal reported in April that Bank of America Chief Executive Kenneth Lewis had told the New York attorney general he believed Paulson and Fed Chairman Ben Bernanke pressured him.
Lawmakers had asked the Fed to release the some 6,000 documents involved in the case, but the Fed has expressed concern that information was confidential.
The committee's announcement comes ahead of Lewis' testimony before the panel on Thursday.
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