Paulson: BofA Threat Was Appropriate

Former Treasury Secretary Henry Paulson says he did threaten to remove Bank of America's (BAC Quote) management if it walked away from the Merrill Lynch deal, but did not advise the CEO to hide any information from shareholders.

In testimony prepared for a scheduled appearance before the House Committee on Oversight and Government Reform on Thursday, Paulson defended his actions, saying he believed that BofA dropping Merrill would have caused financial havoc for the firms involved and the broader system.

"The interests of the nation and Bank of America were aligned," Paulson said. ...