David Mildenburg updates the saga of the yes-we-did-no-we-didn’t backstop agreement Bank of America had — or didn’t have — with the feds and the $4b. in fees the bank should — or should not — pay back to the Treasury.
The upshot, even if no written agreement on the $118b. in federal support was ever finalized, the bank surely gained from the markets being told such a backstop against Merrill Lynch losses was being constructed, therefore Lewis should pay something for that gain.
Me, I am waiting to hear where Republican Financial Services Committee members J. Gresham Barrett, Patrick Henry, and Walter Jones stand on this issue.
