Welch questions former Treasury Secretary Henry Paulson about BOA’s refusal to pay back taxpayers
Rep. Peter Welch on Thursday questioned former Treasury Secretary Henry Paulson about Bank of America’s refusal to pay billions of dollars in fees that were part of an announced package of taxpayer assistance to the bank.
In the wake of a staggering $15 billion loss stemming from Bank of America’s acquisition of Merrill Lynch, the Treasury Department announced in January that Bank of America would receive a $20 billion dollars in TARP funds as well as a “ring-fencing” guarantee that would backstop up to $118 billion in toxic assets. As part of the deal, Bank of America was expected to repay interest on any funds used, plus a $4 billion fee. The bank is now claiming, however, that because the deal was never signed, it is not liable for any fees.