Bank of America Said to Be Near Accord on U.S. Aid

Jan. 15 (Bloomberg) -- Bank of America Corp., the biggest U.S. bank by assets, is nearing an accord on a financial aid package from the U.S. that may include $15 billion to $20 billion in capital, said a person familiar with the matter.

The bank may also get a $120 billion “backstop” to help it cope with troubled assets, said the person, who declined to be identified because the accord hasn't been publicly announced. Bank of America needs the package to cushion losses tied to its purchase of Merrill Lynch & Co. earlier this year, said three people familiar with the matter.

Bank of America moved up its fourth-quarter report to tomorrow amid speculation that bigger-than-expected losses at Merrill Lynch are putting a strain on its new parent. The switch from Jan. 20 may provide investors with details on what kind of help the U.S. will give to the Charlotte, North Carolina-based bank as it tries to absorb New York-based Merrill Lynch.

``The motivation is to try and basically get information to the market sooner rather than later because of all the anxiety that's out there,'' said Bert Ely, chief executive officer of Ely & Co., a bank consulting firm in Alexandria, Virginia. It's a ``very tense situation now,'' he said.

An announcement may come as early as 6 a.m. New York time, the person said. The bank said in an earlier statement it would present results starting an hour later.

The U.S. already injected $25 billion into the combined company to bolster it against the global credit crunch. Details of the aid package were reported earlier by The Wall Street Journal.

Bank of America told regulators in December it might abandon the takeover because of Merrill's worse-than-expected results. The government insisted the Merrill deal proceed because its collapse would renew turmoil in the financial system, said the people, who declined to be identified because talks are private.