Fri, 24 Apr 2009 15:35:39 +0000 – By Judge Andrew NapolitanoFOX News Senior Judical Analyst
No. 1. The Secretary of the Treasury and the Chair of the Federal Reserve have taken an oath to uphold the Constitution and the federal laws. Among the laws that the Treasury Department enforces is the obligation of management of publicly traded corporations to inform shareholders in a meaningful way of the risks attendant upon all extraordinary corporate activity, including major acquisitions.
No. 2.The acquisition of Merrill Lynch by Bank of America was surely a major acquisition and an extraordinary corporate act. The President of B of A now tells us that the Treasury Secretary and the Federal Reserve Chair told him notto inform his shareholders that Merrill Lynch was truly a risky investment. As it turns out, B of A paid $50 billion for an asset that was probably worth $37 billion.
No. 4. If Lewis is charged with fraud, he will not be permitted to assert the defense of "The government told me to do it." There is no such defense, even if and when the government countenances lawbreaking.