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MINUTES
OF
SPECIAL MEETING
OF
BOARD
OF DIRECTORS
OF
BANK
OF
AMERICA CORPORATION
D ~ c e m b e r 2 2 , 2 0 0 8
 
Pursuant
torlue
n o t i ~ e .
 
a
special
me-eting
oftha
I ? < > ~ f : q
 
qf
PirectO(1)
of
Bani<
of
AmeiiCa
COfPoratiQn
(the
~ C o r p o r a t i o n " )
 
was.
held
b¥
telephone
atA:{}Q
P;Ili.
EST' on
Monday,
D e c e . r r l p e i ~ 2 . 2 Q 0 8 .
 
The
follpWing
D i r e c : ~ o r ~
 
were
p r ~ e o l
 
c c m s t i t u t i ~ a , ~ , q u o r u m :
 
Messrs.
William
B ~ r t l e t . !
 
HI_,
Frank
P. Bramble,
Sr.,Johl)
T.
C o l l i . m ~ .
 
Ga.ry'L
Countryman,
Tommy'R.
Franks,
C t 1 a r ~ s .
 
.15..'
Giff.0rd.J<etinetb
D.
L ~ ' I ( i ~ W a l t e r
 
E.
M a s ~ e y ;
 
rhomasJ."May,Thomas
M.Ryan.
O.
T ~ r l 1 p f ¢ $ l g E l n ,
 
Jr·,
Robert
L.rinm-a[\, ancfMmes.
M()nic.a;C.
L o z a n o ~ c l l / ' e r e d f t h R . S p a n g l e r
 
and
J a ~ l t ; l - !
...
, ~
 
:wsrQ-.
AlSO
present
were:
Me,AArs.
J,
S t ~
 
Alphin.
KettnT.,Banks,
Gtegory
l.
Curl.
Bruce
HamrnoflQs,
Liam
; E - ~ M c G ~ i
 
~ t i a r i
 
T ~
 
~ ( ) y r \ i h a n ;
 
JOElL.
Prjee,
Richard
K
'Struthers,
and
Mmes.
AmyW()Ods
Slinkley.
B a r b a - , ' ~
 
.J.,
DesoerL
A n n ~ .
 
114;
F i f l l ; l < : 3 n ~ ,
 
and
Alice'
A.
Herald,
o f f i c e r s · ~ o t t h e . : C o r p o r a t i o n ,
 
Mr.
Lewis
chaired
the
meeting
and
Ms.
Herald
k e p t t h e m i n u t ~ :
 
Mf;
Lewisnot-ed
tliat
fOU
call
had
been
taken.Mt.
leWis
stated
that-he<had
-"7.:_
..
'.
..
..
--
..
_
-"
..
-.
.:
.
s p q J ( E ~ n
 
tp:,mo;;t
of
t ~
 
Directors
by
telephone
-earlier
in
the
< i a y ( ~ ~ r d , i R 9
 
the!
~ ~ I ) ~ s .
 
qf
the
p r e ~ d i n ~
 
. ~ ~ k ~ ~ ( t
 
-
Mt.
Lewis stated
tne
purposeofthe
s p e c i a t m e e t i n g { i S : t Q ) t l $ t J r ~
tl)illlhe
B o ~
 
is
in
a ~ 9 O ! d w i t t l
 
r:J)cmagerpent's
recommendation
to
comp1ete
l h e f l c q U i $ ~ ¢ i o n
 
of
~ ~ r m ' L y n c t l
 
~ .
 
Co
..
J n ~ .
 
r M e r r i ~
 
Lynch';}.
as
St::hEtduled
Q n J a n u a r y ~
 
1;
2009.pwstJam
ttl
t h ~
 
lermsofthat
c e r t a ! t : t t . 9 r ~ f ! m e n l
anr,1
Plan of Merger ("Merger Agreement"),
dateclSepte'!iber15.
ZOOS,
after
dueconsidE!rat10n
of
the undertakin.gsandadmonitions
of
the
f e d e r ~ n e g l , i j a t , o r s .
 
BAC-ML-NYAG00003873
FOIL Confidential
Treatment
Requested
By
Bank
Of
America Corporation
 
Mr. Lewis reported that a series of calls had occurred between management
of
the
Corporation and federal regulators
as
welt as individual
calls with Mr.
PaUlsen, Secretary
of
the
Treasury ("T
reasuryQ)
and Mr. Bernanke. Chairman of
the
B o ~ r d
 
{)f
G o ~ ~ n o r s : o f
 
the Federal
R ~ ~ e r v e
 
{"Fed">, He reported
the
~ e y
 
points
ottf\e
cCiRs
to
qe:
(i)
fir$t
a ~ ( o r e m o s t , t h e
 
T r ~ a s u F V
 
and
Fed
are unified in
theJ
view
that
the
failure
Of
the Corpora,tion
t o c o m p l e t e t h ~
 
acql,Jisition
of
Merrill
LYl1ch
wolild
r e s ~ I t H 1
 
systfi!mic
r l ~ k , t o t h e
 
financialservjcessystem
in
A m e r t ~
 
al1d
wOl,Jld
have
a d v e r s ~
 
corisequeripesfOf
t ~
 
p o r p o r a t i o n ~
 
(ii)
sePOrlo.
the
TreasYJY
anti feet stated strongly
that
w e H ~
 
Jhe
C ~ r p o r a t t o n
 
10-_
.inYOke
tne -
matet;ial
~ d v e f $ e
 
_
c h c l n g ~
 
cMACwr
clause in the merger
a . g r e e m e r i ~ ' ' t ' \ I i t h
 
M e r r : n ~ L Y T l ~ n
 
and
faa
to
dQse
t h ~ l f a , n s a c t i o n .
 
the
_.
.
n e ~ s u r y
 
and
Fed
w.ouldrernove
the
8 9 ~ t l : 1
 
andrn.cfnag.ef!lE!nt
(jf
the
Corpprati()ni(ili) lhir(;j.
the
Treasl!fY and Fed-have confirmed
t h C : ! l t h $ y - w i l t . J ? ~ o V l d e
 
a ~ ~ t i s t a ~ ~ t o t n ~ C 9 t p o C l l t j o n
to
restore
c a p i ~ a ]
 
a n d J o p r o t ~ c t t t l e
C o r p o r ~ t l o n
 
a S a . ~ A s t
 
t h ~ ' a t l V e t s ~ 1 t n p a c t o f
c:ertain:Merril1
Lynch
assets;
an;d
•.
( i v ) f ~ ,
 
.the Fed· and
T r e a $ Y J Y ~ t a t ~
 
trClt
t t i ~
 
j n " e ~ . m e n t
 
a n d a $ S ~ l p r o t e c l i o n
 
promised
~ \ J J g
 
o o t ~ e
 
proii!dedOi"
c o i n p l e ~ e Q
 
by.
~ h #
 
S C h ~ d u l e d c 1 o s i n g
 
dateoLthe
r T \ ~ r .
 
Janua'}'
1,
2 ( } Q 9 ~
 
l h ~ t l h e m e t g , ~ s t l O u t d c l o s e C l ~ s ~ h ~ d u l e d ~ a n d
that
the Corporation·
can
rely
on
the
Fed
a.lid
1"reaS\Jry
locOWPleteandde1iver
the
ptornisedsupportb.yJanuary
20.2009.
the
date
$ ~ l 1 ¢ g u l e d f o r
th£!
releCl5eof earninQsbyttie
COflloratiOn;
Mr;
Lewis
relterated
tllat
be
had
discussed
iO
detail
the (;<mtj:nfof the
previousconversations
with-
federal regulators.
w i t h t h e . e o a r G ~ .
 
He
reported
t b a t l o ~ d d i t i ( l l l
 
to
tm,
prevlouslydescl1bedconversations,
he
had
s p o ~ e n a g a i n
with
Mr.
Bemankewno
stated 1h8t
he,Mr
..
Bernanke,
has
spoken
to
other
federal
regUlators, including
the
Office
o f t ~ C o m p t r o n e r
 
of
the Currency
C-OCC")
and
the
Fore,
and
hcas
confirmeq that
theOCe.
FDIC,
t h e c u r r e n l a ~
 
incoming
Treasury·
Qfficials; and
t h ~
 
Incoming
e c o n O I T t ~
 
'team
of
t . h ~
 
neoN.
admii:listratiOn
are
i l 1 f { ) r m ~ c l o f
thecQITlmitrJ'lent
to
t h ~ '
 
pwporatiorl.
bythefe<i.and·
Tref.!$j.lry
~ · ~ · t h a ~ a "
 
~ n c u r
 
With
the,comrnitmen1
q f t ~
 
C9mbined
f e d e J ~ ' : f e s ( l l a t 9 r $
 
n e ~ r a J
 
r e g i J l a t o r ~ n { t )
 
the
C O ~ l l ,
 
ML
Lewi$ stated
t h ~ X .
 
ba.s¢d
o l l r n S c l i s C ~ S ~ 1 0 1 1 $
 
With
mertlber.:s·.of
the·
B o a f ( ~ , .
 
management
r ~ o m m e h d l : l d
 
that
t h ~
 
Corporatioh
n9t.exercise
tl1eMAC cliluse
uridettlle
f't1erger Agreemetltvvith MerrHI
L y n ¢ f t : ~ ! : l ( f t h a t t l : \ e
 
GOfPoratjon
proceE:!dandcl9se
the
·Merrilf
Lynch acqllisitiQnon January
1.2009
.•
a ~
 
o r i g i n a l l y ' ~ o n t e m p l a t e d ,
 
111(1
Boarcldiscussed
with
MT'
Moynihan
REDACTED
FOIL ConfidentiCiI Treatment Requested
By Bank
Of
BAC-ML-NYAG00003874
6
m Q r i r ~
 
r.nmoration
 
Mr.
LewiS
stated further that
the
Corporation
will
proceed
diligently
with the workrequired
to document
the
commitment from the
Fed.
Treasury and otherS to facilitate anannouncement
of
the commitment
in
conjunction with
the
Corporation's earnings release onJanuary
40.
2 0 0 9 ~
 
. r v 1 r . ~
 
L e V ( j ~ r ~ s t a t e c l
 
that
m a n a g e n i e n t ' ~
 
r ~ c o m m e n d a t i < 3 n
 
is'1)ased on the followingfacts: instryctlon fr<irnthe Fed
and
TreaSlUY
nqt
1.Q
~ } ( e r c i s e
 
thetv\A9
g ~ u ~
 
in the Merger
A 9 f e ~ m ¢ p t ; t h e a s ~ . r ~ f 1 ~
 
of
thf:
F ~ d a n d
 
Treasl,lrythat the
C o r P O f ~ t i Q r . \ . c a n
 
completE!
the
a ~ u i ~ l t i c m · - O f
 
Merrilt
LYl1gO
on
thl;!
v e ( ~
 
commitment
of
the
F e ( 1 · a n ~ .
 
T t : " e a s l J r f · t o h ~ v e a
 
t r ~ m s a ~ i o r r e v i d e t w i n ~ n h e F e d
-and
treasury's
committed assistance
i n ~ ) ( i s t ~ n p ! n o
 
later-than
Januarr
20:-
2 0 0 9 ~ t h e
 
scheduted date
of
theCorporation!s
e a r n ~ s
 
rE!tease; and
M r ~ .
 
L e w i s ~
 
comtortwitb
the'assuratlces
which have been made
by
the Fed and
Treasury
and clarification
t h a t f u n d s , u n d e r t h e T A A P p r o g r a m a f e ~ v a i l a b i e f o I
distributioll-to
the
Corporation
to
fulfill thecommttTTlenLof
the
Treasury and Fed.
Me
Lew1snoted·t!Jat
np
voiewas,
r _ ~ Q V i r e d b y
 
the Board;
but
that·
he
wished
to
open
.the
r ~ o r n m e n d ~ 1 i Q l J f p r
 
d i s c u s s i o n ~ a m ( ) n g
 
the
BOf1lr-d-snd
manag:errn;!r:lt
[ ) j ~ c u ~ ~ i O { l
 
: ~ 5 u e d . w l t h
 
.tl)e
60ar.d:clarjfyjhgthat
i.s
w a ~ n Q t p e . r s u a d e d
 
or
infJlJeAP.eQ
b.y
the
s t a . t ~ m e n t ! : > y
the
federal
r : e Q l l l ~ t Q r ~
 
that.the
B Q ~ r ~
 
:and
l J l a n ~ g ~ ~ n t
 
would 'be
f : e m o y e Q , ~ Y ,
 
~
 
f e d ~ r a l f ~ 1 I 1 a t p ~ i f - - t t ; l e c : q r : p p r a ! i ~ n w e r e
tq€xerGisethe'MA,C,
<:I;:n,Jseand-fail
to
c p r n p l e ~
 
the
a c q u i ~ i t i o n . o f
 
Merrill
Lynch.
The.
Board concurreditwould reaph a decision that itdeemed in the best inter'est
of
the
C O r ' p o r a t ~ o n
 
and its shareholders·
without
regard to this
- t : e . p r ~ e n t a ~ p n b y t h e
f e p e : r ~ l r e g u l a ~ r s ;
 
Flirth.er
q ~ ~ i J f ) s i o l 1
 
E ! n s l l ~ d .
 
induO:f£JQ.
a c ~ r a t e
 
c h a r ~ c l ~ t i Z a t i o n W '
 
the
f e d ~ a f
 
r$gwat0r$o.f
t h ~ i r ~ d m r n : i t m e n t ·
to .the
G o r p o r a ~ i o n
 
w h ~
 
a n n o ~ ; :
 
t f l . e i ~ I ~ V ~ 1 1 l
 
~ s
 
of
-
Mertilll:.yncp:tt\e-impooaqce of
-the-tUning
ofthean"QullCf;trlenl
~ f
 
t f 1 e C 9 m m W O ~ t~ t t ~
 
fed
anQ
T ~ a ~ :
 
tQeC;Qfporation's d!'?idenqsanq.
incentive
c o m p e n s ~ t i Q t t :
 
t ~ ~ r . ~ b i f ~
 
of
a
wn1ten.
~ m m j ~ ~ ! l t f f ( ) D l
 
tile
iederal
.
r ~ u l a t o r s ;
 
the reliabilitv
of
the
' f c ~ p r ~ t ~ t ~ o f
 
th$'
fed,etal
resJ.llatots;U1e.desirabiljty
· o f a . s ~ e t p u r c h a s e s
 
ancf.
equity infus1cms:
t t j ~ ' C Q r p Q f ~ t i o n ' $
 
ability
to.
f ~ r t h e r
 
n ~ g Q t i a t e a f t e r
 
the
con.stimmationofthe
merger;
fl,Jrthl:!r
: i t i ~ U i r y r ~ a r d i n g
 
$ p e d f i c a ~ u r a n c e ~ · .
 
by
the federal
r e 9 u ~ t ( ) r S ;
 
the Coq:lOration's
recent
r e s p o . ~ ~ e s
 
ur
certain
reQl1e$ts::Qf
federalteg_JJ!at()rs;
REDACTED
FOIL Confidential Treatment Requested By
Bank OfBAC-ML-NYAG00003875
America Corporation
of 00

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