Jun. 26--Fed Chairman Ben Bernanke told a congressional panel that the regulator asked the bank to "look at top management and make changes to its board" after Bank of America proceeded with the deal and accepted another dose of government aid in January. It was the clearest signal yet that the Fed, in recent months, has had a heavier hand in the bank's operations and an unfolding board shake-up.

Documents released by the committee indicate Fed staffers in December wanted to downgrade their ratings of Bank of America's management and take some type of supervisory action.

A Fed spokesman declined to comment on any demands made of the bank. Bank of America spokesman Jim Mahoney said he couldn't discuss specific regulatory actions, but said in "the aftermath of the government stress test and in the current environment those kind of reviews are taking place across all of the major banks."

In recent weeks, Bank of America has announced the retirement of longtime chief risk officer Amy Woods Brinkley and a revamp of its board, which has included the addition of four new directors and the departure of six members. Bernanke said the Fed is not involved in Bank of America's day-to-day management, but is reviewing the bank's capital, assets, liquidity and leadership.

In Thursday's hearing of the House Oversight and Government Reform Committee, Bernanke was the only witness to testify. But Bank of America chief executive Ken Lewis, who testified this month, remained a focal point as lawmakers probed Lewis' motivation for trying to back out of the deal and the pressure he faced from the government to move forward.

Asked whether the continuing scrutiny threatened Lewis' job, Mahoney, the Bank of America spokesman, pointed to remarks by Bernanke in which the Fed chair indicated the Merrill deal had worked out in the end.

"In Washington today, Chairman Bernanke indicated that Bank of America and Merrill Lynch are on a healthy path, that the transaction protected the economy, stabilized the markets and was a good deal for taxpayers, " Mahoney said. "I would say that's a very, very strong report card for Ken Lewis."

Bank of America's shares closed flat at $12.35 Thursday, a day in which the bank said it has raised more than the $33.9 billion in capital required by the government stress test.

Amid a global financial meltdown in mid-September, Bank of America agreed to buy Merrill after less than 48 hours of negotiations. When Merrill's losses ballooned in the fourth quarter, Lewis attempted to back out in December, but Fed and Treasury officials strongly objected.