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The Chairman of the House Oversight and Government Reform Committee, Congressman Edopholus Towns (D -Brooklyn, N.Y.) is leading the investigation into whether executives for Bank of America made misrepresentations based on false claims to the government in December 2008 regarding it’s agreed takeover of Merrill Lynch in order to receive significant taxpayer bailouts.

The committee has acquired thousands of documents that included handwritten notes from lawyers representing BoA in it’s takeover of Merrill Lynch that indicated the bank’s claim of a “Material Adverse Change” in circumstances regarding the takeover was unfounded.  Nonetheless, it appears executives for the bank used this legal clause as a veiled threat to withdraw from the takeover in order to to persuade the U.S. Treasury and then Secretary Hank Paulson to give them more bailout money.  If true, this would be tantamount to extortion – which is a criminal offense – let alone fraudulent misrepresentation.

BofA spokesman Larry Di Rita said that BoA’s actions “were based on our desire to make the best decision for our shareholders . . .”

This self-serving statement is utterly laughable in light of U.S. District Court Judge Jed A. Rakoff’s take on BoA’s behavior in the suit brought by the SEC against the bank.  BoA screwed it’s shareholders by intentionally withholding information regarding the Merrill Lynch bonuses and then blaming their lawyers.  Now we learn the high likelihood that these same executives ignored the advice of their lawyers and wilfully mislead the U.S. Treasury when they looked to the government for financial bailouts.  Why BoA is allowed to perpetuate this ongoing charade defies logic and reason. 

These men are financial terrorists! 

When will they be made to answer for their crimes against the American people?