Paulson speaks on Capitol Hill Former Treasury Secretary Henry Paulson will today testify on Capitol Hill to discuss his alleged role in persuading Bank of America's Kenneth Lewis in the Merrill Lynch deal. Bank of America CEO maintains federal officials pressured him to keep the Merrill deal alive and acknowledged that his job would be at risk if he did not do so. Paulson on Wednesday defended his actions saying that his actions spared the U.S. financial market from total collapse. Many more Americans would be without their homes, their jobs, their businesses, their savings and their way of life, he said in written testimony prepared for a hearing Thursday.
Fed Balance sheet report to be releasedFed's balance sheet is to be released today, the report indicates factors that supply reserves into the banking system and those that absorb reserve funds. Markets focus on weekly changes for factors supplying reserves with the key measure being Reserve Bank credit. Changes in Reserve Bank credit give a broad picture of reserve injections.