It is not April 15, but Bank of America is ready to pay Uncle Sam. These are not taxes, though; this is the $45 billion loan Bank of America received through the Troubled Asset Relief Program or TARP.
Prior to mergers and acquisitions, Bank of America was the Bank of Italy (country of the cradle of banking) and was founded in San Francisco in 1904 by A. P. Giannini. It dominated banking in the United States and has gone through many changes to be nearly unrecognizable except by its namesake. Regardless, when it recently became too big to fail, the Federal Reserve bailed it out first with $25 billion in October 2008, then an additional $20 billion in January when Bank of America took over the Merill Lynch mob.
Bank of America will be the first of seven companies owing big money to the Fed to peek out from underneath the TARP. The bank’s action should prompt the other six to repay the government with a debt of gratitude and at a good rate of return.
Once the debt is repaid, Bank of America executives can enjoy their lunch out from underneath the bailout stigma. Without compensation restrictions, they anticipate an easier time recruiting and retaining key personnel.
Not everyone is ready to repay his or her loan. If you are seeking shelter in a foreclosure case, and you are not a billion-dollar bank, you may wish to consider a legal defense or other legal options to help you get back on firm financial footing. Put a foundation in place which you can stand on, and rebuild your assets. I encourage you to seek your options. No one should go through foreclosure alone.
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