Reports: Taxpayers to finance Merrill deal

The U.S. government is about to give Bank of America Corp. billions more aid to help the bank complete its purchase of Merrill Lynch, according to published reports.

The U.S. government is about to give Bank of America Corp. billions more aid to help the bank complete its purchase of Merrill Lynch, according to published reports.
The terms of the additional financial support are still being finalized, according to a report in The Wall Street Journal today.
Details of the package are expected to be announced next Tuesday when Bank of America reports fourth-quarter earnings, the Journal said.
These could include an infusion in the area of $15 billion from the Treasury’s Troubled Asset Relief Program, in addition to government guarantees, Reuters reported.
Bank of America of Charlotte, N.C., last month became concerned about New York based Merrill Lynch & Co. Inc. ‘s deteriorating financial condition and approached the Department of the Treasury about more help, the paper said.
The Financial Times said bank officials even told the Treasury that they wanted to scrap the deal.
But Treasury officials were concerned that a collapse of the deal would cause systemic damage, according to the reports.