Rep. Darrell Issa Alleges Bernanke Cover-Up!

Unbelievable.
What a moronic publicity stunt!

 

It's interesting that he's a Republican from guess where? California! Just as they are trying to figure out how to get bailed out of the financial mess. The fed has been explicit in saying they will not guarantee the debt of Cali. Seems to be some kind of extortion.

 

Ridiculous theory.
Got anything better than that?

 

Issa's has been a back-bench bomb thrower since he bought his Congressional seat. This is after he couldn't buy his California US Senate seat.

 

Republican accusal means nothing to this administration. Without a smoking gun I don't see anything coming of this.

Besides, in this political environment, republicans are becoming an endangered species. Twenty years of overconfidence.

 

Who do you think carries more weight in Washington and at the Capital . . . Warren Buffett's opinion of Bernanke ( which is extremely high ) or some hair-brained loose-cannon like Darrell Issa???

Issa is claiming that Bernanke made personal threats in private and also alleges that Bernanke personally covered it up.

Good Luck trying to prove ALL that, Mr. Issa!

 

At the House hearing yesterday, some lawmakers alleged the Fed overstepped its authority. In one Dec. 20 e-mail released by the committee, Richmond Fed President Jeffrey Lacker wrote that Bernanke planned to “make it even more clear” that if Bank of America tried to back out of the deal “and they need assistance, management is gone.”

http://www.bloomberg.com/apps/news?pid=20601103&sid=aiXYMtYIk7_A

That's all they have, and it's in the third-person. He's out when his term is over. Even Lewis is zip-lipped.

It's coercion, but probably within the letter of the law. Obama fired Wagoner after GM received funds. Bernanke [if he wrote it] was clear in that email that if BAC backed-out and BAC needed help then Lewis was gone. Shady, but not likely illegal.

 

I see nothing wrong with "advising" BAC and Ken Lewis what the market ramifications are if BAC "walked" from the MER deal . . . In fact, it would have been highly negligent if the Fed had not indicated the ramifications of such on the markets.

Remember, this was a very serious period of SYSTEMIC RISK.

If the deal doesn't get done, assets go to zero and their is a systemic implosion.

 

Ken Lewis is zip-lipped because his Board of Directors wants him out. He's on the hot-seat with his own Board.

 

I viewed Issa as a flake in the late 90's when he was running around California trying to buy up any political seat in sight.