Bank Of America CEO Takes Lumps On Merrill Merger
Professor Kenneth E. Scott is quoted in a Reuters article about Bank of America Corp's request for additional bailout money to help complete its acquisition of Merrill Lynch. Reuters writes:
Bank of America is in talks with the U.S. government to get billions of dollars of new aid to digest Merrill and its still large book of troubled mortgage assets, a person familiar with the matter said.
The sum is on top of the $25 billion of funds the bank got from the Treasury Department's Troubled Asset Relief Plan. Bank of America declined to comment.
"It's not reassuring," said Kenneth Scott, a professor of law and business at Stanford Law School and former general counsel of the Federal Savings and Loan Insurance Corp. "There are more losses to be realized, but the question is the extent to which they are already reflected in values that banks are recording on their books."