BofA (BAC) Looks To Repay Portion of Bailout Funds
Down)
According to reports from the Wall Street Journal, Bank of America (NYSE: BAC) is offering to repay a portion of its government bailout money and the U.S. is pushing the bank to pay least $500 million to shelve a tentative pact that would have had the government share its losses on certain assets.
Bank of America won't repay the $45 billion in TARP capital it has received, instead it would start with the $20 billion in additional aid supplied in January related to its takeover of Merrill Lynch.
By repaying this amount it would mean BofA would no longer be considered an "exceptional" aid recipient, which means less government scrutiny.
In addition to repaying a portion of its TARP capital, Bank of America is looking to end a loss share agreement on a $118 billion pool of assets owned by BofA and Merrill. An "appropriate fee" is required to end this agreement and the government is asking for between $300 million and $500 million to end this plan.
Link to WSJ Article
Bank of America won't repay the $45 billion in TARP capital it has received, instead it would start with the $20 billion in additional aid supplied in January related to its takeover of Merrill Lynch.
By repaying this amount it would mean BofA would no longer be considered an "exceptional" aid recipient, which means less government scrutiny.
In addition to repaying a portion of its TARP capital, Bank of America is looking to end a loss share agreement on a $118 billion pool of assets owned by BofA and Merrill. An "appropriate fee" is required to end this agreement and the government is asking for between $300 million and $500 million to end this plan.
Link to WSJ Article
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