Bank of America Inc. is continuing to struggle with the fallout of last year's financial crisis, at once defying a congressional oversight panel while also taking steps to reduce its reliance on the government's financial assistance.
The bank missed a Monday deadline to hand over documents related to its purchase of Merrill Lynch & Co. Rep. Edolphus Towns, chairman of the House committee on oversight and government reform, said he would meet with the bank's chief compliance officer Tuesday to discuss the matter.
"Whether it is through future hearings, a subpoena, or both, the committee will obtain this information," Towns said in a statement.
Towns' committee has been investigating whether Bank of America executives were aware of the depths of Merrill's precarious financial position when their company entered into the purchase agreement. Merrill later showed unexpected losses, forcing the federal government to extend additional bailout support to ensure the deal went through.
In related news, the bank said that it would pay the Treasury Department $425 million for unused financial guarantees acquired as part of the Merrill deal. The bank is also now in close consultation with Treasury over returning $45 billion in assistance it received as part of the Troubled Asset Relief Program, the New York Times reported.
To return the money, the bank must prove it would be financially sound without it and able to raise money without government assistance or guarantees. The Times reported that executives hope to make an initial repayment of $20 billion within the next few months.
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