Bank Of America Offers To Repay Some Aid
http://www.bloomberg.com/apps/news?pid=20601087&sid=aW0trv637ehw
Bank of America intends to repay a portion of the $20 billion federal aid received by it at the time of acquisition of Merrill Lynch & Co, the Wall Street Journal said quoting unidentified sources. The company also seeks to end its loss sharing agreement with the government on Merrill Lynch assets and may have to pay $300-500 million for that. A partial repayment of the federal aid will remove the company from the scrutiny of the Congress and the regulators. In January this year, the federal government had agreed to guarantee Bank of America’s assets worth $118 million to help it absorb Merrill Lynch and prevent a deepening of the financial crisis. The government had also agreed to be liable for 90% of any additional losses after the Bank of America has absorbed losses worth $10 billion. More and more companies are planning to repay government funds to avoid various restrictions on their functioning. Journal said quoting unidentified sources. The company also seeks to end its loss sharing agreement with the government on Merrill Lynch assets and may have to pay $300-500 million for that. A partial repayment of the federal aid will remove the company from the scrutiny of the Congress and the regulators. In January this year, the federal government had agreed to guarantee Bank of America’s assets worth $118 million to help it absorb Merrill Lynch and prevent a deepening of the financial crisis. The government had also agreed to be liable for 90% of any additional losses after the Bank of America has absorbed losses worth $10 billion. More and more companies are planning to repay government funds to avoid various restrictions on their functioning.
