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AlbertJayNock

Jonathan Macey is a great big fat stupid idiot

It was recently revealed that Bank Of America CEO Ken Lewis was pressured by fed chief Ben Bernanke and former treasury secretary Henry Paulson to go through with a merger with Merrill Lynch. Lewis alleges he was also pressured by Bernanke and Paulson to keep quiet about this merger.

This story is illustrative of a couple of important points. The big obvious one is that with federal money comes federal strings. And given that the Merrill Lynch merger in retrospect turned out to be a bad idea, it shows that government experts do NOT always make better decisions than those in the private sector.

The Jonathan Macey in the title is the deputy dean of the Yale Law School. In a recent interview with the Wall Street Journal, he said
"whatever he was told by these regulators should not or does not in any shape or form get him off the hook". But according to this UPI news release , Lewis alleged that "Paulson threatened to remove him from his job if the deal collapsed". I know it is only Lewis's allegation.
But in the WSJ interview, Macey does not refute  this. I don't know why Paulson is not catching at least as much flack as Lewis. He deserves a lot more.

The worst thing he has said is not in the linked interview. I heard him on the radio the other night saying that Lewis gave in to "peer pressure". That's why all the vituperation in the title. Paulson was not the ringleader of the cool kids threatening not to invite him to any of the good parties unless he complied. He was the Secretary Of The Treasury threatening to remove him from his job. Jonathan Macey doesn't seem to understand the difference and that is why he is a great big fat stupid idiot. With stupid sauce.

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