Poor Ken Lewis, CEO of Bank of America, is in the unenviable position of having to defend himself from charges that he was either an idiot for not anticipating Merrill Lynch’s losses prior to late December, shortly before the deal was set to close or he was pressured into the closing the deal by the Fed and Treasury Department. Congress seems to be intent on proving that he is both a dope and was bowled over by the government. Not a happy day for Mr. Lewis.
Many in the market are watching the hearings, helping send the markets into a consolidation after a rally in most aspects of the reflation trade. EUR/USD trades at 1.4084 after reaching 1.4095 highs intraday.
