Second Bailout US$20 million for Bank of America

Bank of America gets fresh fund from government bailout Troubled Assets Relief Program (TARP) around $20 millions USD for second bailout program with 8 percent of preference shares as the deal. Through the $20 millions USD, Bank of America becomes the highest financial institution in Troubled Assets Relief Program that receive fresh fund from government. In first bailout, Bank of America got $25 millions USD so there is $45 millions USD as total injection fund from government. The deal between Bank of America and Government (TARP) also includes some conditions such limitation on salary, executive board compensation, modification on residential credit program implementation.

With $20 million extra fund, Bank of America will get easier acquisition process on Merrill Lynch. Financial Department of America also gives extra backup with protection on worst condition on loans, residential loans and securities backed from loaners and others assets.
According to US Department of Finance official taken from AFP, the injection and protection on Bank of America is a sequence programs from department to stabilize financial institution with Non Performing Loan and Financial market in order to recover and to strong market, to protect labors, saving and pension insurance.

The deal was published to public before some hours when Bank of America launch their financial quarterly report and also before senates do vote for $700 millions USD for second bailout as the President proposal.

Bank of America (BoA) is largest bank and financial institution in America with 150 clients in world. Bank of America could find him self save place from crisis storm. Large assets couldn’t help them in crisis and the effect on stock is BoA shares declined 28 percent to $7.37 USD lowest level in last 17 years.

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