Daily News Roundup

Posted by vriz on 06/11/2009

There is no rest for the. . .  Bank of America CEO Ken Lewis.  Mr. Lewis was called to testify on the Capitol Hill again today, this time before the House Committee on Oversight and Government Reform.  The bone of contention is BofA’s purchase of Merrill Lynch late last year, and the government bailout to the tune of $20 billion that was needed later to cover some surprising losses on Merrill’s balance sheet.  Mr. Lewis has been and continues to insist that the U.S. government applied a great deal of pressure to BofA’s management to accept the Merrill deal.  The House Committee will be calling former Treasury Secretary Paulson and the Fed Chairman Ben Bernanke to testify next. U.S. stocks are on the move today buoyed by the increase in May retail sales and the fall in the initial weekly jobless claims to 601,000, the lowest level since January.  By mid-day trading, all U.S. major stock exchanges gained well over 1% in value, with S&P 500 advancing the farthest 1.73 percent, a seven-month high. Of course, we have a long ways to go to recover from the recession.  By just one measure, household wealth, the U.S. economy lost $1.3 trillion in the first quarter of 2009, according to the Federal Reserve Flow of Funds report released today.

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