Doug #162:

BofA was considering buying Merryl Lynch in Sept 2008 and said it did not need any bailout money. They had not gotten into the Sub Prime market as big as other large banks.

The Fed Govt then told them they WOULD take the bailout money; it was an offer they could not refuse.

But then as the value of Lynch fell further BofA decided it was not a good deal and they were backing out.

At which point the Feds told them that SOMEONE would HAVE to buy Lynch for the good of all mankind or something like that, and since the Feds now OWNED a big chunk of BofA, the bank would be the designated stuckee.

Anyway, that is what the WSJ article said.