Wednesday, June 24, 2009

The Fed's Emails

The following may or may not be all the emails that will be referenced at the hearing tomorrow. Oddly (or not) the $78 billion portfolio of problem positions has been redacted.

Going through these now... At first blush, sentences like "Ken Lewis' claim that they were surprised by the rapid growth of the losses seems somewhat suspect. At a minimum it calls into question the adequacy of the due diligence process BAC has been doing in preparation for the takeover. [As an aside, BAC management told us they could not provide electronic versions of ML files, and one wonders how that is possible since they have been doing the due diligence for months and having e-files would have made that much simpler and more effective for them. May have helped limit their current surprise.]" get the saliva going.

Also this tidbit could cause some headaches:

And at least someone is honest:

And this could very well be the piece de resistance.

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