Democrats and Republicans leveled a blast at former Treasury secretary

Being still angry about the Bush administration`s handling of the financial crisis, House Democrats and Republicans lashed out against former Treasury secretary Henry M. Paulson Jr. Lawmakers called on Paulson to account for a litany of perceived offenses: misleading Congress to gain approval of the $700 billion rescue program, investing in banks on overly generous terms, failing to help homeowners facing foreclosure and allowing the nation to fall into economic crisis.

The hearing before the House Committee on Oversight and Government Reform was convened as part of an investigation into one episode in the crisis: the government's push to secure the acquisition of Merrill Lynch by Bank of America. The committee previously heard from Bank of America chief executive Kenneth D. Lewis and Federal Reserve Chairman Ben S. Bernanke. Paulson, after consulting with Bernanke, warned Lewis that senior management could be removed if the bank walked away, and Paulson promised Lewis the necessary financial support to move ahead. A deal was worked out and a crisis was staved off.

Besides, Democrats on the committee have pursued the theory that Lewis manipulated the government into providing additional aid by threatening to walk. Republicans have countered that the government forced Bank of America to complete a deal the company no longer wanted. Members of both parties have questioned why the bank and regulators failed to disclose information to the public about their negotiations. The deal was not announced until January, after details had been worked out, although the initial agreement was reached in December.

Furthermore, Fed documents show that other regulatory agencies were intentionally kept out of the loop, including the Securities and Exchange Commission and an interagency panel created by Congress to coordinate the government's response to the crisis, the Financial Stability Oversight Board. The committee`s chairman, Rep. Edolphus Towns said that his committee would next hear testimony from those bodies.