Rep. Issa on Paulson Hearing

" The Treasury Secretary Hank Paulson back in the spotlight he'll be on Capitol Hill tomorrow facing questions about whether. He forced Bank of America's hand than its purchase of Merrill Lynch and the -- secretary is coming out swinging. Congressman Daryl -- said the ranking minority leader of the committee on oversight and government. Is back with as you've got to this to deal with tomorrow. How do you think he's going to be received at the committee."

" Let him think he's going to be received some what -- Because -- his his testimony has been somewhat leaked. You're probably already aware that he's going to try to thread the needle saying. Basically he delivered the words. That Bernanke told us were delivered. He delivered them without a specific order from Bernanke even though the words are consistent with -- And consistent with the email from lacquer. I'll but it wasn't and inappropriate threat. You know for most of us I think for German towns of myself. What we're seeing is the hubris of government saying. Even though we said we're gonna remove you with the board you're gonna be out of here are you going to lose your jobs your careers and your company it wasn't a threat -- inappropriate threat. What it was clearly a threat it was clearly use of the 700 billion of walking around money that congress had given these people. And they were using it both as a carrot --"

" It we've been looking at his prepared comments at what is going to see you tomorrow and he basically doesn't meant that you know he did tell. You know and sent looked to Louis we could exercise their right right to remove you whether or not obviously I don't think you don't think that's appropriate I don't what are we need this quote -- Inez Anderson. President of the Houston city tomorrow this statement. Quota would be unthinkable for -- they take this destructive actions for which there was no reasonable legal basis. And which would show a lack of judgment and that's his reasoning. CU as to why he made this thinly veiled threats so -- ultimately."

" And Paulson. Paulson -- Paulson was basically a day trader from Goldman Sachs is going to tell us. About legal judgment. Mergers acquisitions and Bernanke -- an economist. Is backing him up what you have as yet group of people words we're judge jury and Kane man on every decision. Yes they had some consultants and every console and that was working with the Fed and with Paulson. They were trying to save a global economic system they were not dealing about whether or not -- this was a fair price he was paid. And perhaps should be renegotiated. Or beat that in fact if you save that the world will fall apart if you don't acquire Merrill Lynch. It's because Merrill Lynch is going to fall apart if you don't acquire. So what you're saying is don't do a Mac but do take a company which will fall if you don't acquire right. Well if you don't fall if you don't require what does that say about Merrill Lynch kind of even Merrill Lynch and."

" Good I commend congressman I think it's more and better reserve officials. Keith Dennis Kucinich is off the treasury officials. I think this situation is more nuanced because we're in receipt of the merger documents and that Mac -- the material adverse conditions -- Which -- more ironclad than people are led to believe. -- sandbag Americas killers could not walk away from the deal with any even in the event of global terrorist act war you know negative marks to Merrill's assets that drop in Merrill's stock price. So that would have been I think as a lengthy court battle could have been sued and it really could have hammered Bank of America stock price of Ken Lewis tried to invoke. The -- plus to hurt the earnings as well."

" I hear all of that but windy and it become. The judgment trial. You know judge jury and hang man as to whether or not -- nuances of a merger. Was -- was impact appropriate or not appropriate this was this was a separate transaction. I understand that the Fed had a back up plan to bail out Merrill Lynch and they had the ability to put money into Merrill Lynch. The day after the acquisition except for paying almost everybody that was at Merrill Lynch was still running Merrill Lynch. Everywhere there's a DNA was still running the debate -- you're not talking about that merger that one day event. Somehow changing the world of how the company was wrong or anything else it was purely about money. And we had they had 700 billion dollars worth of walking around money they chose to use this threat instead of saying. Okay if this is in fact the material adverse. Condition and it affects the value of the company. Tell us why and how we never did that simply threaten an executive we gonna gain on this tomorrow what are we going to gain from this this committee -- The most important thing we're gonna gain is in the future do wean the congress give to the executive branch and the Fed. Unique authority to bypass the entire judicial system and simply run around doing what they did. Or do we in the future planned a sensible way to include the rule of law and judges federal judges as arbitrators. In the future that's probably the most important question is. These powers were unique and they were done quickly and we didn't think we had time at least the executive branch in the bad time that congress gave -- but looking back. When we bypassed bankruptcy laws -- shredded all kinds of years of tradition. Of of how. I think public deal -- Kennedy's do we given that the future."

" I want you don't quit you criticize our producer of the air forming a night eleven subcommittee regarding the financial crisis what -- that look -- congressman."

" What we had a where I authored a bill with chairman towns to call for 9/11 type commission. On the Republican side we're naming. Bill Thomas former chairman of ways and means and Peter Wallace and as our -- that independent bipartisan commission. That's he had been created our insistence. So that you have an outside entity without current congressman security administration people. To -- to look at the what happened how it happened. And hopefully like the nine elevenths commission. Make those kinds of recommendations going forward so that we don't simply repeat this or maybe even make it worse by giving powers to the Fed without oversight."

" All right congressman as a thank you forgetting about and what and thank you for speaking about that we'll see you on television a monster."

" The right thing they don't you take your entire body."