Bank of America May Repay U.S. Aid, End Loss-Sharing Accord |
| Bloomberg - Sep 1, 2009 |
Bank of America Corp. offered to repay part of the $45 billion received in U.S. bank-rescue funds and end a loss-sharing arrangement with the government related to the bank’s acquisition of Merrill Lynch & Co., according to a person familiar with the plan.
Bank of America is discussing whether to pay “a few hundred million” to cancel the agreement, aimed at helping the lender absorb Merrill Lynch and prevent the financial crisis from deepening, according to the person, who declined to be identified because negotiations remain private. The Charlotte, North Carolina-based bank is also negotiating repayment of $20 billion from the Troubled Asset Relief Program.
Regulators contend Bank of America owes at least part of a $4 billion fee it agreed to pay in January -- even without a completed legal document -- because the company benefited from implied U.S. backing on about $118 billion of Merrill Lynch assets, such as mortgage-backed bonds. The company said it owed the Treasury nothing because the agreement was never signed and funds never used.
Read Full Article from Bloomberg
- Posted: 2009-09-01 11:39:24
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