Originally posted by FlyersFan
If they weren't in trouble then they shouldn't have gotten the bailout money. At any rate - they got bailout money AND they were giving money to
ACORN.
The only reason that BoA has needed bailout money is on behalf of Merrill Lynch:
The administration, the Federal Reserve and the Federal Deposit Insurance Corp. also agreed to participate in a program to provide guarantees
against losses on approximately $118 billion in various types of loans and securities backed by residential and commercial real estate loans.
The bulk of these holdings were assumed by Bank of America when it acquired Merrill Lynch & Co. Inc. in a deal that closed earlier this
year.
Bank of America Corp. already had been granted $25 billion from the bailout fund that Congress passed on Oct. 3, but found it needed more as it sought
to cope with rising losses related to its acquisition of Merrill Lynch.
WASHINGTON (Reuters UK) - Bank of America Corp will receive $20 billion (13 billion pounds) in fresh government investments and a federal
backstop against $118 billion of bad assets it holds to help it absorb Merrill Lynch & Co, U.S. officials said on Friday.
As part of an emergency plan announced by the Treasury Department, the Federal Reserve and Federal Deposit Insurance Corp, Treasury will provide Bank
of America, the largest U.S. bank by assets, with $20 billion in fresh capital from a government bailout fund in exchange for preferred stock.
The government also agreed to share in losses on the troubled assets, which Bank of America took on when it paid an estimated $19.4 billion for
Merrill on January 1.
They were sitting quite pretty before that deal went through to try to save Merrill. Therefore, technically BoA has not done anything that you are
accusing it of doing, they are only getting money because of the bad assets they absorbed on behalf of Merrill’s abuses. The people they are laying
off are some employees of Merrill Lynch, BTW, not BoA. If they had let Merrill flop on its own, they would not have needed a dime from the government.
I believe that the Government is favoring the banks, who kept their noses clean of the fiasco, and who have tried to save other institutions during
the crash, by giving them priority to that money. Rightfully so IMHO.
Originally posted by FlyersFan
I think there may be something to it. (the time line shifts .. not John Titor.
Stranger things have happened in the last 9 years, that is for certain.