News and Articles

The United States is coming to give thousands of millions of dollars to the bank Bank of America, reported Wednesday that the newspaper Wall Street Journal, which would make it the second bank that requires a second round of government assistance.

Bank of America is struggling to digest the purchase of January 1 of brokerage Merrill Lynch & Co, said the daily quoting sources close to the subject.


Shares of the bank gave more than 5% in electronic transactions, to its lowest level since 1991.

Merrill Lynch's losses in the fourth quarter of 2008 were greater than anticipated, so that Bank of America began to talk with the U.S. Treasury in mid-December, the newspaper added.


The terms of government aid are being outlined and the details would be revealed with the results of the bank report scheduled for January 20.

A possible agreement would protect the Bank of America Merrill toxic assets, limiting potential losses because of them.


The talks were led by Treasury Secretary Hank Paulson, who fear that Bank of America fails to realize the agreement, which would leave Merrill Lynch with a partner.

The Bank of America spokesman Scott Silvestri, and the White House declined to comment. The Treasury also addressed the issue.