BoA rescued as Congress grants $350bn for Tarp

Washington has granted Bank of America, the United States's third-largest lender, up to $138 billion in federal aid on signs that a batch of assets taken onto the lender's balance sheet following its buyout of failed investment bank Merrill Lynch could incur "unusually large losses."

News of the bailout comes after Congress granted the US Treasury the remaining $350 billion allocated to the Troubled Asset Relief Plan (Tarp). Senators defeated a bid to block the use of the second batch of the