Bernanke and Paulson: disclosure poses systemic risk

BofA chief testifies that Bernanke and Paulson told him to stay mum on Merrill deal. (WSJ)

Senate report: Rice and Cheney approved waterboarding in summer 2002. (CNN)

Frank puts brakes on Treasury-backed receivership legislation. (WSJ)

Pelosi had been informed of wiretap of Harman three years ago. (NYT)

Chu and Jackson offer support of WaxmanMarkey climate and energy proposal, but stop short of endorsing. (NYT)

Torture report points to top

Rumsfeld approved harsh interrogation tactics used at Guantanamo and Abu Ghraib, according to Senate committee report to be released today. (NYT)

Rattner‘s Quadrangle employed son of Senator from New Mexico; state pension funds invested in the firm. (NYT)

Citigroup skips coffee and doughnuts, hires 50 security guards to handle angry investors at annual meeting.  (NYT)

Group of lawyers, led by former NY AG, call on Holder to review Alabama governor‘s conviction. (NYT)

Freddie Mac CFO found dead in apparent suicide. (FT)

NSA wiretap intrigue deepens

Pelosi donor used as leverage in AIPACHarman negotiation identified as Forbes 400 member Haim Saban. (NYT)

Bailout watchdog says Chrysler turned down government loan because of executive pay limits. (WaPo)

Lanny Breuer, Christine Varney, Tony West confirmed for Justice posts. (AP)

NYSE warns McClatchy that it may be delisted. (MarketWatch)

Citigroup annual meeting is today; FDIC has discussed possible replacements for Pandit in event of more aid. (FT)

Circular intelligence

NSA wiretap recorded Rep. Harman agreeing to quid pro quo with Israeli agent. (CQ Politics via TPM)

White House and Treasury officials now favoring stabilizing banks by converting loans to shares. (NYT)

Bank of America profits triple to $4.24 billion in first quarter. (Bloomberg)

Private equity firms Quadrangle Group, Carlyle Group – already under investigation for pay-to-play pension deals – hired indicted political adviser to help get pension business. (WSJ)

Volcker criticizes Fed‘s target inflation rate of 2% in Q & A with Kohn. (WSJ)

Too much listening

Domestic eavesdropping program at NSA exceeded limits set by Congress. (NYT)

Law firm to rake in record $55 million quarterly fee for Lehman bankruptcy. (WSJ)

JPMorgan becomes latest bank to beat expectations, announcing $2.1 billion in first quarter profits. (FT)

Foreclosures up 24% in first quarter; Donovan sees increasing foreclosures in coming months. (AP)

Texas governor says his state could secede. (HuffPost)

Ackman losing big, biding time on activist investments in Target. (Bloomberg)