Feds backstop BofA's Merrill Lynch play

The government today announced a plan to backstop Bank of America against mounting losses driven in part its acquisitions of Countrywide Financial Corp. and Merrill Lynch, as bank reported a $1.79 billion fourth quarter loss.

The Treasury, Federal Reserve and FDIC are providing loan guarantees, access to liquidity and capital to Bank of America, including protection against any "unusually large" losses on $118 billion in loans mostly acquired in Bank of America's acquisition of Merrill Lynch.

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