US gives Bank of America $20 bn in capital injection
Bank of America receives 20 billion dollars in fresh capital to help shore it up after acquiring Merrill Lynch, the US Treasury Department announced.india Updated: Jan 16, 2009 11:23 IST
Bank of America receives 20 billion dollars in fresh capital to help shore it up after acquiring Merrill Lynch, the US Treasury Department announced early on Friday.
The US Treasury Department said it "will invest 20 billion dollars in Bank of America from the Troubled Assets Relief Program (TARP) in exchange for preferred stock with an 8 percent dividend to the Treasury."
Treasury and the Federal Deposit Insurance Corporation will also "provide protection against the possibility of unusually large losses on an asset pool of approximately 118 billion dollars of loans, securities backed by residential and commercial real estate loans, and other such assets, all of which have been marked to current market value," the statement read.
First Published: Jan 16, 2009 11:20 IST