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To: gondramB
This one particularly stinks - bailing them out not because of economic conditions but because they paid too much for a brokerage.

That may be the case. But, there have been some news items stating that, before the deal was done, BAC went to the Fed (or Treasury, I'm not sure) and said that they might need backstopping, because Merrill's book was tanking worse than they had bargained for, and if they didn't get it, they would scotch the deal. In that case, the Fed/Treasury's desire to get someone behind Merrill may be a key factor, and now their private guarantee is coming due.

I hope we find out the whole story soon.

14 posted on 01/15/2009 3:20:21 PM PST by Pearls Before Swine (Is /sarc really necessary?)
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To: Pearls Before Swine

Unfortunately, it sounds like you have a point.


21 posted on 01/15/2009 3:29:02 PM PST by gondramB (Preach the Gospel at all times, and when necessary, use words.)
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