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House Targets Fed In Bank Of America Probe

The Associated Press

WASHINGTON (AP) — A House panel has subpoenaed documents that lawmakers say could shed new light on Federal Reserve Chairman Ben Bernanke's role in Bank of America's acquisition of Merrill Lynch.

The subpoena comes ahead of a hearing next week in which Bernanke is scheduled to testify.

Lawmakers have accused Bernanke and President George W. Bush's treasury secretary, Hank Paulson, of pressuring Bank of America Corp.'s chief executive, Kenneth Lewis, into buying Merrill Lynch & Co. and urging him to keep quiet about Merrill's financial problems.

Failing to divulge that information would have violated Lewis' fiduciary duty to the bank's shareholders.