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ADL Colin · 01-15-2009, 11:43 AM

The Bank of America/Merrill deal closed on January 1st. the WSJ is reporting that the deal only closed because the Treasury gave a verbal commitment to supply bailout funds

"Discussions over these funds began in mid-December when Bank of America approached the Treasury Department. The bank, already the recipient of $25 billion in committed federal rescue funds, said that it was unlikely to complete its Jan. 1 purchase of the ailing Wall Street securities firm because of Merrill's larger-than-expected losses in the fourth quarter, according to a person"

Interesting that back in October CEO Ken Lewis said they didn't need the money but only took it as show of solidarity and for the public good.

Wonder how the Countrywide and Merrill deals will look in the long-run. Seems that the Merrill deal put the bank at risk - and for that reason - it is not a good deal. Seems hard to believe that it won't be a kick-ass acquisition in the long-run though. Maybe Lewis acted knowing that bailout money would always be available. Risky, risky.

01-15-2009, 11:43 AM
ADL Colin Too lazy to set a custom title Join Date: Feb 2001 Location: Tube Titans, USA Posts: 11,929	The Bank of America/Merrill deal closed on January 1st. the WSJ is reporting that the deal only closed because the Treasury gave a verbal commitment to supply bailout funds "Discussions over these funds began in mid-December when Bank of America approached the Treasury Department. The bank, already the recipient of $25 billion in committed federal rescue funds, said that it was unlikely to complete its Jan. 1 purchase of the ailing Wall Street securities firm because of Merrill's larger-than-expected losses in the fourth quarter, according to a person" Interesting that back in October CEO Ken Lewis said they didn't need the money but only took it as show of solidarity and for the public good. Wonder how the Countrywide and Merrill deals will look in the long-run. Seems that the Merrill deal put the bank at risk - and for that reason - it is not a good deal. Seems hard to believe that it won't be a kick-ass acquisition in the long-run though. Maybe Lewis acted knowing that bailout money would always be available. Risky, risky. __________________ Adult Date Link - $50 PPS starting NOW! -- good and JUICY! skype = "adultdatelink"