Bernanke testifies on the contentious period around the turn of the year when Bank of America was contemplating scuttling the takeover of Merill Lynch on the Hill tomorrow. The Fed and Treasury are thought to have strong-armed B of A into closing the deal to support broader financial markets.
Congress seems to think the government overstep its bounds and apparently has documents to support that contention. Should be an interesting piece of political theater tomorrow.
EUR/USD is drifting up, trading now at 1.3995, as a Congressman alleges the Fed engaged in a “cover-up” in the Merrill Lynch matter.
