Bank of America indeed. The extent of bank losses mostly due to toxic derivatives is staggering. We will continue to see injections of capital into many large banks for months to come. Eventually there will be only one bank left-The Last National Bank. This is insane.-Lou
Government giving $20 billion to Bank of America
LONDON (MarketWatch) -- The U.S. government on Friday announced it was injecting $20 billion into Bank of America and guaranteeing losses on billions more as the Charlotte giant struggles to digest the acquisition of Merrill Lynch.
In a statement released early Friday, the Treasury Department and the Federal Deposit Insurance Corporation said they will invest $20 billion in Bank of America from the Troubled Assets Relief Program in exchange for preferred stock paying an 8% dividend.
The government also will provide protection against the possibility of unusually large losses on an asset pool of approximately $118 billion of loans, securities backed by residential and commercial real estate loans and other such assets, which have been marked to current value.
The government also will provide protection against the possibility of unusually large losses on an asset pool of approximately $118 billion of loans, securities backed by residential and commercial real estate loans and other such assets, which have been marked to current value.
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