Congress, BofA Clash Over Merrill Secrets

Bank of America claims it doesn't have to produce details about its decision to merge with Merrill Lynch because the conversations are protected by attorney-client privilege. But the chairman of the House Oversight and Government Reform Committee begs to differ, reports the New York Times. The showdown peaked last week when Rep. Edolphus Towns gave the bank until noon today to produce documents.

Towns wants to know when Bank of America knew of Merrill's enormous losses last year, when it got a commitment for federal bailout money, and what the bank’s legal advisers said about about having to disclose those developments to shareholders. Bank officials have asked for more time, but Towns stuck to his guns, saying the company was “hiding information.”