BofA sells $9B in FDIC-backed debt
Sacramento Business Journal
Bank of America Corp. has sold $9 billion in debt backed by the Federal Deposit Insurance Corp.
The sale is part of the federal government’s Temporary Liquidity Guarantee Program, which guarantees newly issued senior unsecured debt of banks, thrifts and certain holding companies.
The FDIC adopted the program on Oct. 13 because of disruptions in the credit market, particularly the interbank lending market. The program is designed to boost liquidity in the banking system.
Meanwhile, CNBC reports that Charlotte-based BofA will cut 10,000 investment-banking jobs as part of its acquisition of Merrill Lynch & Co. Inc. (NYSE:MER).
"We are currently evaluating our staffing levels, given both the pending merger with Merrill Lynch and the weak economic environment which is affecting the level of business activity," a BofA spokesman says. "While we believe both factors will result in eliminations of positions, we have not completed our analysis. We expect to have a final plan early in 2009."
The deal, valued at $50 billion when announced in September, is slated to close by the end of the year. The Federal Reserve approved the transaction last week.
The purchase will make BofA (NYSE:BAC) the nation’s largest retail brokerage and wealth-management firm, with more than $2.5 trillion in client assets and more than 20,000 financial advisers.
BofA and Merrill shareholders are slated to vote Friday on the deal.
Charlotte Business Journal
Related Industry News |
Latest News |
Most Viewed Stories |
Most Emailed Stories |
