Friday, January 16, 2009

Lighting A Pile Of Money On Fire

Throw it on the bonfire, quick!

Bank of America [BAC 8.32 --- UNCH (0) ], the largest U.S. bank, lost $1.79 billion, or 48 cents per share, in the fourth quarter, compared with a year-earlier profit of $268 million, or 5 cents. Net revenue increased 22 percent to $15.68 billion.

At Merrill, the loss was $9.62 per share, driven by significant writedowns of troubled assets.

Bank of America announced the results hours after it won $20 billion in new capital from the government's $700 billion Troubled Asset Relief Program (TARP).

...though the $20 billion is just the appetizer:

The government said earlier today it will invest $20 billion in Bank of America and guarantee $118 billion of assets to help the company absorb Merrill and prevent the financial crisis from deepening.

So absurd.