Accountability Series: Crime was committed, three suspects are known. Will anybody be punished?

House Oversight and Government Reform Committee had a series of hearings concerning Bank of America purchase of Merrill Lynch. BofA Ken Lewis, Federal Reserve Chairman Ben Bernanke, and former Treasury Secretary Hank Paulson were called to testify.

This is the story - Bank of America management did not disclose material facts to their shareholders (and to the markets) either on their own accord or under pressure from the Fed or Treasury. This is a violation of SEC Act of 1933 and is a serious crime. Martha Stewart went to jail for less.

The suspects are known. Will any of them serve time?

I seriously doubt that.

There is a growing pressure to push this story on to the sidelines. Paulson's appearance before the committee on July 16, 2009 was not even televised (only FOX carried a beginning of it for an hour or so and then dropped it). I watched it on the Internet and it was quite amusing. Paulson was very nervous as some congressmen were pounding on him mercilessly. He was accused of lying to them about TARP program, channeling money to his "pals" in major banks, scheming to become Treasury secretary in order not to pay $100 million in taxes on his capital gains in Goldman Sachs stock, threatening poor and cuddly Ken Lewis and his warm and fuzzy board of directors, and getting a lousy deal for taxpayers investment of ten billion dollars compared to what Warren Buffet got for five. Some congressmen even introduced evidence that Paulson was lying during that very testimony.

Yet, none of the major media channels carried the story. The obvious conclusion is that some "influential circuits" issued a directive to let it slide. Despite congressmen grand standing, this is probably what is going to happen to the "usual suspects" - they will walk - laughing all the way to their banks.