The cryptocracy had hauled Lewis before the House Committee on Oversight and Government Reform for an inquisition. But Lewis stood his ground, and explained how the government had threatened to remove him if the BoA reneged on the deal to buy Merrill Lynch. He managed to bring into the open the machinations of Bernanke, Federal Reserve Chairman, and Paulson, then Treasury Secretary. Lewis subsequently made a statement to try to smooth things over: (WSJ) "'I would say they strongly advised and they spoke in strong terms, but I think it was with the best intentions,' Mr. Lewis said."
A pretty fair performance in the face of the attack Lewis faced. The result: "Federal Reserve officials also have concluded it would be unwise to force out Mr. Lewis now, said people familiar with the situation."
The cryptocracy doesn't always get their way and they hate the light of day shinning on their secret doings. In this case, the retreat doesn't amount to much because Lewis is supportive of the cryptocracy's intentions. All that the was involved here was disagreement on how to handle Merrill Lynch, and on Mr. Lewis' having the temerity to challenge the wisdom of the central planners. The problem seems to have been papered over for the time being.
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