nytimes.com - 1/16/2009
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Kenneth D. Lewis gambled on bold acquisitions to build Bank of America into the nation’s largest bank. But the need for fresh government support to grapple with the newly revealed losses at Merrill Lynch , the brokerage firm he snapped up in a rapid-fire arrangement at the height of the ...
globaleconomicanalysis.blogspot.com - 1/16/2009
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globaleconomicanalysis.blogspot.com —
Bank of America fell a whopping 18.43% today,
hitting a new 52 week intraday low of $7.35...
on concerns it is not going to easily be able to digest the merger with Merrill Lynch. I suggest Bank of America has easily bitten off more than it can chew and ...
(more)
Bank of America Threatens Fed, Demands More Cash From ...
newsroom.bankofamerica.com - 1/16/2009
online.wsj.com - 1/15/2009
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online.wsj.com —
WASHINGTON -- The U.S. government is close to
finalizing a deal that would give billions in additional...
aid to Bank of America Corp. to help it close its acquisition of Merrill Lynch & Co., according to people familiar with the situation. Discussions ...
(more)
Bank of America to Get Billions in U.S. Aid
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Possible BofA Bailout Details
Calculated Risk —
From the NY Times: U.S. Said Close to Giving More to Bank of America The program ... will hold Bank of America responsible for the first $10 billion in losses on a pool of $118 billion in illiquid assets. The government will take on the next $10 billion in losses and then taking on 90 percent of any additional losses with Bank of America absorbing the rest. That puts the taxpayers on the line for close to $100 billion. What do we get for taking on this risk? Hopefully we will have more details in the morning.
Bank Of America and Bailout Money
Short-Term Trading —
... money so far are reluctant to lend, worrying that if new loans go bad, they will be in worse shape if the economy deteriorates". NYT Bank of America to Receive Additional $20 Billion "The need for fresh government support to grapple with the newly revealed losses at Merrill Lynch, the brokerage firm he snapped up in a rapid-fire arrangement at the height of the financial crisis in September, raises questions about whether the bank has gone a deal too far". NYT It is quite shocking to see how prices went down. Bank of America Corporation(BAC) ...
BofA Shares Tumble as Analysts' Worries Grow
DealBook —
Bank of America’s shares fell as much as 20 percent Tuesday as several Wall Street analysts lowered their ratings or price targets for the company’s stock. The steep drop followed Friday’s announcement that the bank lost $1.8 billion in the fourth quarter and was accepting $20 billion from the government to help it absorb billions of dollars in losses associated with its acquisition of Merrill Lynch. There were also reports Tuesday that BofA intends to lay off some 4,000 workers in its capital markets group, which may have added to the gloom surrounding the stock. A team of ...
Related Content
Did Bank of America Mislead Investors?
dealbook.blogs.nytimes.com 1/16/2009 — Bank's of America's not-so-surprising announcement on Friday that it is being bailed out by the federal government because of excessive losses at its new Merrill Lynch subsidiary raises a number of questions. The most significant of these is what did ...
Bank of America Goes Public on Back Door Politics of Merill Deal
economicdiscourse.com 2/5/2009 — Bank of America broke the critical $5/per share level today on renewed concerns about their financial stability. The markets are fearing the worst, and as the ship begins to sink, new information on the politics of the merger are beginning to bubble up. Bank of America is essentially declaring ...
Bank of America May Receive More Bailout Money
nytimes.com 1/15/2009 — Bank of America, struggling with mounting losses at Merrill Lynch, would be the second bank after Citigroup to receive an additional lifeline from the government. >
More on Bank of America
baselinescenario.com 9/28/2009 — Last Wednesday I wrote a highly critical post about the agreement between Bank of America(BAC) and the government (Treasury, the Fed, and the FDIC) to terminate BAC’s asset guarantee agreement in exchange for a payment of $425 million. I’ve learned some more about this and I think ...
Ken Lewis, the Master Government Negotiator
dealbook.blogs.nytimes.com 5/15/2009 — Bank of America's Kenneth Lewis has made some questionable private deals, but he is a master at negotiating with the government and leveraging a weak hand to cover his missteps, The Deal Professor says.
In Bank of America Mess, Whither Wachtell?
dealbook.blogs.nytimes.com 10/16/2009 — Deal Professors Steven Davidoff and Peter Henning mull over the potential dilemma facing Wachtell, Lipton, Rosen & Katz after Bank of America agreed to waive its attorney-client privilege for documents related to its Merrill Lynch deal.
Bank of America: Growth Takes a Back Seat
blog.ockhamresearch.com 5/12/2009 — Bank of America ( BAC ) has undoubtedly been one of the most active stocks in the market over the last couple of weeks. Last week alone, the bank’s stock was up more than 60% after results of the stress tests revealed that the bank will need to raise as much as $34 billion. It was ...
Opportunities in Bank Bonds, Part 2
alephblog.com 3/12/2009 —
Thinking about Citigroup and Bank of America — Given to Fincorp Clients 3/4/09
When the government gets involved in business, the rules of the game change. Creditworthiness becomes less of an “analyze the metrics” affair, and more of a “how strong of a guarantee” affair. ...
Uncle Sam Kitteh Sez —
The Big Money 1/16/2009
Recommended Reading: "Senate releases second part of bailout fund"-- New York Times . OR: "Bank of America gets $20 million in U.S. aid"-- Wall Street Journal . OR: "House Dems push $825 billion recovery plan"-- Politico .
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