Description

Bank of America was among the eight large U.S. banks to receive the Treasury Department's initial round of capital investments (nine if you count Merrill Lynch, now part of BoA) -- money described by Treasury officials not as a bailout, but rather as funds to help bolster "healthy" banks in tough times. But last January, Bank of America received additional government aid to help it cover the massive losses resulting from its acquisition of Merrill Lynch.

The $45 billion in aid came mostly in the form of large capital investments, but in January, BoA struck a deal with the government to limit losses from a $118 billion pool of troubled assets. The Treasury agreed to make those guarantees alongside the Fed and FDIC. But Bank of America backed out of the deal before it was finalized, eventually paying a total of $425 million in fees to the Treasury, Fed, and FDIC. As you can see to the right, the Treasury received $276 million of that. In December, BoA returned the $45 billion to the Treasury.


Additional Resources:
Bank of America Term Sheet (1/15/09)