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Bank of America

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Fed to the Rescue, Grants BofA $20 Billion More 

Jan 16, 2009By

Whispers Thursday afternoon of a possible second-round injection of federal funds into Bank of America Corp. [stock BAC][/stock] were confirmed late Thursday night when the U.S. Treasury and Federal Deposit Insurance Corp. announced in a press release the government had agreed to invest an additional $20 billion into the banking giant. The $20 billion in TARP funds will be exchanged for preferred stock with an 8 percent dividend to the Treasury.

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