When Bank of America and Merrill Lynch inked their deal back in September, BofA agreed to pay US$50 billion in stock for Merrill. The market value of the combined companies then was US$176 billion. Now, it's about US$39 billion. And this, after the US Treasury committed US$20 billion more in capital to BofA a few weeks ago.
Treasury Secretary Geithner should announce the new Administration's strategy for attacking the financial crisis in a few days. The announcement was to be made tomorrow, Monday, February 9, but it looks like it has been postponed until the 10th. It's a very sticky political problem and, as events have demonstrated, there's no guarantee it will end the carnage.
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