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tr'rorn:
RKim@wlrk.com
Senl:
Sunrlny,Decernber
21,2008
l:33AM(GMT)
To:
joe-price@bankofamerica-com;
NGDunm@wlrk.cott;
brian.
t.
m
oynihan(D,b
ankofameri
ca.
com
Cc:
EDHerlihy@wlrk.com;
EMRoth@.wlrk,com;MGuest@wlrk-corn;PCHein@.wlrk.com
Subject:
RE:
PNVILEGED
Id
have
Ken
preparedto
go
over
a
lis
of
points
at
to
why
BAC
has
decidd
nol
to
nove
forward
with
the deal
*/o
governmént
assist¿nce
but
am
inclined
not
toraise
thern
on
hisown
-
would
ratherfocusthe
call
on
how
to
getthe dealdone.
RichardK.Kim
Wachtell,
Lipton,
Rosen
&
Katz2t2-403-1354
From
:
Pr
ice,
Joe
[ma
iho:joe.
price
@ban
lofamerica.com]
Sent:
Saturday,
December
20'
2008
8:21
PÞt
To:
K¡m,
RichardK.; Demmo,
Nidolas
G.;
Moytlihan,
Brian
T.
(Bank
of
America
Corpomtlon)
cc:
Hedlhy,
EdwadD.;
Roth,
Erlc
M.;Guest,Matthew
M';
Heln,
Peter
C.
Suþect
REr
PRIVILEGED
Should
weinterþct
a conceptbroaderthan
jusl
a
MAC(inaddition
to
Richard'scomment)
-
more around
MAO/misre
prese
r¡tation/eta|....
From:
RKim@w'lrk.com
lmailb:RKim@wlrk-com]
SenÈ
Saturday,December
20,20088:19
PM
To:
Price,
Joe;NGDemmo@wlrk.com;Moynihan,
Brian
T
Cc:
EDHerlihy@wlrk.corn;EMRoth@wlrk,com;MGuest@wlrk'com;
PCHein@wlrk.com
Subject
RE:
PRIVILEGED
I
wouldrevise
the
third bulletto
say:
l.¡
We
are
stillof
the
view
that
there
has
been
a
MAC
at
Merrill
-
a¡d
everyday their
numbersget\¡l-orse.
Mse
fundamentally,acquiring
Merrill
in
its
currenl
state
could
do trernendousdamage to
BAC.
However,we
understand
your
concernsand
are
commitædto
working
togetherto
find
a
uay
tomove
forwædwith
the
acquisilionwithout
destabilizingour
franchise-
I
think
we needto
try
focus
the regulators'attention
on
the
Fact
thal acquiring
lvfenill
would
be unsafe
a¡ld
unsoundandaway
from
whether
a
MAC
has
occurred.Much
moredifTicult
for frern to
counter.
RichudK,
Kim
'Wachtell-
Lipton,
Rosen
&
Katz2t2-403-7354
From:
Price,
Joe
[mailto:joe.price@ban}ofamerica'com]2
3Gonf
identia
I
TreatnrentRequested
BAC-ML-HOGR-502-00000944
Senu
Saturday,
December20,20088:06
PM
To:
Dernrno,
Nicholas
G.;
Moynihan,
Brian
T'
(Dankof
Arnerha
Corporation)
Cc;
Herlihy,Edward
D.;
Roth,
Eric
M.;
Kim,
Rhhard
K.; Guest.MatthewM.;Hein,
Peter
C.
Subjecù
RE:
PRIVILEGEDHe
needsto
underslandthe exposures
aredifferentthan
Citi
and
the
numberis
1S0ish
when
includil[
derivates
and
synthelics
-
othenvise,
thal
makes sense
lo
rne
From:
ÀEDemmo@wlk.ærn
[mailto:NGDemmo@whk.com]
SenùSaturda¡
December
20,
2008
7:44
PM
To:
Price,
Joe;MoynitBn,
Brian
T
Gc
EDHerlihy@wlrk.com;EMRothGrwlrk,corn;RKim@wlrk.com;
MGuçt@wlrk.corn;
PC|-þin@wlrk'comSUbJCC:RE:
PRIVILEGED
Brianhadagoodsuggeslion,
whici
was
lo
cut back
lhe
dete¡l
for Ken/Hankdiscussion
purposes,
I
was
gci
ng
to
kill
th
e
existinglangusge
and
replace
wilh
"
The ring-fencing
would
be
structuredsimilarly to
the
Citi
stucture,
except that
the
pool
wõuld
be
Jpprorirnalely
$80to
$100billion.
Thiswouldhetp
BAG-
creab
statility
and
co-nfidence
that
the Menill
iesulb
seen
in
thäfouilh
quarterrlrouH notbe
repeated.'
Maybeweshould saythet
lhe
pool
would
''heve
ân
approxlmate
notonal
amountof$80-10O'?
F
rom
i
Pr
ice,
Joe
[ma
i
lto
:joe.price
@ban
kofamerica.com]
SenB
Saturda¿December20,
2008
7:36
PM
To:
Dernmo,
Nlcholas
G.;
Moynlhan,
Brlan
T.
(BankofAmerlca Co¡poratton)
Cc:
Herlihy,Edward
D.;
Roth,
Eric
M.;
Kim,Richard K.;Guest,Maühew
M.
Subjecü
RE:
PRIVILEGEDNick,
See below
4.
5.
l.
2.
6.
o
The
ring-fencing would
be
sinrila¡
ætbe
Citi
structure'
excePl
that
3.
ryntlretic
as¡sets
ând
derivativeer(posure.
Theexpostrresarc
differenl
lhat
Citi's
given
the
diftÞrent
typesoftrorbtcdbusinessesatMenill-poePrice]willprovidelheassetdetailstotheFedandto
your
team:
-4.
inclurling
the
derivative
ancl
syntheticnotions
of
70
billion
-
note
that.
this
exclt¡desthe
corporatecreditlending
facilities
and
potentialcounterpartyriswe
are
still
workingfhrough];
5.
sharing
Ígol%
ofthe
losses
afterthatpoint,
up
to
a
maximum
of
$[J.
't'heremaind_e¡wor¡ld
be
t1]fundcd
by
thc
Fcd
with
a
non-fccours¡c
loan,subjcctto
a
[10]%loss
sharing
byBAC
6.
l,
)o/o
dividend
rate,
split
between
theTreasury
and
the
FDIC
as
you
delerrnine.
i.
I
think
yor¡havero
let
himknow
we
are
talking
something
other
úari
accn¡albased
assets
-
which
was
a
lot of
Citi's
number
8.
9.
Plus
lo.
I
¡
Just
say
reduce
diridend withoul
theother
items
about
keeping
it
there.
7.9.
10.
I
l.
12.
13.
t4.
Gonfidential
Treatnenl
RequesÛed
BAC
-ML-H
O
O
R-502
{X}000945
From¡
NGDemmo@wlk.com[mailto:NGDemmo@whlccom]
Senù
Saturday, December
20,2008 7:06
PM
To:
Price,
Joe;
Moynihan,
Brian
TCcr
EDHerlihy@wlrk.com; EMRoth@wlrk.corn; RKim@wlrk.com;MGuest@wlrk.corn
Subject
PRMLEGEDAttached
are
drall
talking
points.
Note
that
nobody
else al
VVLRK
(incbding
Eric Roth)has
yet
hed e chânce to reviswthese
yel.
lt
probably
npkesserpelo
getback
on
the
phone-maybeat
B
if
lhat works for
people
-
to
run
thlough
comments.
++ +{.
+ lt
+
+
+
li
++ {.
+
*
t
+ +
+'}'Ì
+
*
t
+
:}
ri
+
+
+ +
+
1.
+
+
+
Any tax advice
containedin
this communicalion is notintended
or
writlen
to
be used, and cannot
be
used,
for
rhe
pìlrpose
of
avoicling tax
penaltes
andis
not intended
to
be
used orreferreclto
in
promoting,rnarketing
or
f.ï'*i.'."8îgå1*:l'll?:í:*nfl
ÍP;.'i:ff
*:i:p.'.T.îli:1ff
T*?n';********
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***t t(t**t¡(r.r.*t*f *l**rl*tr***¡{trt*****rltrt(**(rå.f.*trt**l.tl.**t¡*f.l.r.t(*f.**tt*******¡l
llJ
D¡twe
wont lo
Ect
¡nlo
thit
le|l
ctlttctailvithHP?Gonfidentia
I
TreatmentReguested
BAC
-ML-H
O G
R-502
-00000946
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