The rumor we heard is that Merrill never actually took any TARP money. Paulson strong-armed them, made a lot of noise, but they never actually got a check. This would make a lot of the skewering they have been taking from the likes of Andrew Cuomo, false.
We, of course, are instantly suspicious. Did they take money that, technically, wasn't under the TARP umbrella (how's that for mixed metaphors?) or somesuch dodge? Or have they really enjoyed no government assistance in this respect at all. Why aren't they screaming bloody murder about this?
We know someone out there knows. Find us.
Posted by Seaman Bodine , Jan 27, 2009 2:34PM
BAC got a double dose?
Posted by guest , Jan 27, 2009 2:36PM
BAC got the ML TARP money when they signed the deal to buy them. It was reported on back then.
Posted by guest , Jan 27, 2009 2:37PM
BAC got the ML TARP money when they signed the deal to buy them. It was reported on back then as well by a few.
Posted by guest , Jan 27, 2009 2:40PM
Crazy rumor. Keep up the good work.
See ML 8-K from last October:
On October 26, 2008, Merrill Lynch & Co., Inc. ("Merrill Lynch") entered into a securities purchase agreement with the U.S. Treasury setting forth the terms upon which Merrill Lynch would issue a new series of preferred stock and warrants to the U.S. Treasury (the "TARP Purchase Agreement"). In view of the pending merger agreement with Bank of America Corporation ("Bank of America"), Merrill Lynch has determined that it will not sell securities to the U.S. Treasury under the CPP at this time, but may do so in the future under certain circumstances. The TARP Purchase Agreement provides for delayed settlement of a sale of $10 billion of a new series of Merrill Lynch preferred stock and warrants to purchase 64,991,334 shares of Merrill Lynch Common Stock at an exercise price of $23.08 per share.
Posted by guest , Jan 27, 2009 2:40PM
that explains BAC's second bailout i.e. maybe that second bailout was the $$ Paulson planned for ML
Posted by guest , Jan 27, 2009 2:41PM
@2/3- ok, but the cash that went to MER bonuses, was MER cash, not BAC.
Posted by guest , Jan 27, 2009 2:42PM
"Cuomo"
... Stopped reading right there.
Posted by Clown Capital , Jan 27, 2009 2:42PM
Cuomo's just pissed that he's not taking Hilary's seat in the Senate. He's now taking his frustrations out on the finance industry as a whole. What a douche...
Posted by guest , Jan 27, 2009 2:44PM
@6 - cash is fungible.
Posted by guest , Jan 27, 2009 2:54PM
BAC got TARP money. BAC would have dropped the merger without the gov forcing it.
If BAC dropped the merger, MER would be liquidated equity = 0 bonds = less than 40 cents.
So the gov money is the only reason MER has any value going forward.
Posted by NAS Keflavik boi , Jan 27, 2009 2:56PM
@ 8 -
rat-faced andy just making his bones for when he tries to unseat Paterson in 2010.
Posted by guest , Jan 27, 2009 3:05PM
Not sure if everyone is aware of Cuomo's previous extracarricular activities. The NYT has a prequel story tracing the origins of the centuries-old blood feud between the aristocratic vampires and their onetime slaves, the Lycans. In the Dark Ages, a young Lycan named Caroline Kennedy emerged as a powerful leader who rallies the werewolves to rise up against Andrew Cuomo, the cruel vampire king who has enslaved them. Caroline is joined by her secret lover, Sonja, in her battle against the Vampire army and her struggle for Lycan freedom.
Posted by guest , Jan 27, 2009 3:09PM
Cuomo on a serious tear. No one is safe. Wait till he spikes Patterson's Chicken & Waffles on Sunday.
Posted by guest , Jan 27, 2009 3:17PM
"In view of the pending merger agreement with Bank of America Corporation ("Bank of America"), Merrill Lynch has determined that it will not sell securities to the U.S. Treasury under the CPP at this time, but may do so in the future under certain circumstances."
Merrill didn't take the money. It signed it over to BAC. This is a secret?
Posted by guest , Jan 27, 2009 3:18PM
From Treasury:
1/ This transaction was included in previous Transaction Reports with Merrill Lynch & Co., Inc. listed as the qualifying institution and a 10/28/2008 transaction date, footnoted to indicate that settlement was deferred pending merger. The purchase of Merrill Lynch by Bank of America was completed on 1/1/2009, and this transaction under the CPP was funded on 1/9/2009.
http://www.treas.gov/initiatives/eesa/docs/transaction_report_01222009.pdf
Posted by Clown Capital , Jan 27, 2009 3:20PM
@9
Unfortunately BAC cash and Merrill cash are not fungible. You see, Merrill cash has a chocolatey, caramel center encased with gold wrapping while BAC cash can be blue, white or yellow and can buy you Park Place and Boardwalk at a significant discount.
Posted by guest , Jan 27, 2009 3:37PM
So the equestion is whether BAC/MER still have an option to sell USG the remaining $10bn.
Posted by guest , Jan 27, 2009 3:41PM
Cuomo will be the next gov. take it to the bank.
Posted by guest , Jan 27, 2009 3:48PM
Cuomo is playing Spitzer's game, except for the Client 9 stuff. Trash the bad guys in the news, to make more news, putting himself in the limelight.
Posted by guest , Jan 27, 2009 4:02PM
@19 - thanks Captain Obvious!
@16 - nope, still fungible.
Posted by guest , Jan 27, 2009 4:27PM
@9 - Cash is fungible...until it runs out.
-Bernard L. Madoff
Posted by guest , Jan 27, 2009 6:00PM
But remember the brokers got a "Transition bonus" on 1/23/09
Posted by guest , Jan 28, 2009 10:20AM
Andrew cuomo is gay. He blows hard.