Bank of America Terminates Agreement

On Monday, Bank of America announced that it has agreed to a deal with the United States federal government to terminate its term sheet agreement. To terminate the agreement, Bank of America will pay $425 million. The money will go to the FDIC, the Federal Reserve and the Treasury Department.
This agreement was originally constructed after Bank of America acquired Merrill Lynch at the beginning of the year. In the agreement, the federal government guaranteed nearly $120 billion in assets. However, Kenneth Lewis, the CEO and President of Bank of America, believes that his company has the means to thrive on …read more