The plan was completed in time to be announced simultaneously with Bank of America's public

The plan was completed in time to be announced simultaneously with Bank of America's public earnings announcement, which had been moved forward to January 16, 2009, from January 20, 2009. The package included an additional $20 billion equity investment from the Troubled Asset Relief Program and a loss-protection arrangement, or ring fence, for a pool of assets valued at about $118 billion. The staff of the Federal Reserve worked diligently with Treasury, other regulators, and Bank of America to put in place a package that would help to shore up the combined company's financial position and reduce the risk of market disruption. For these reasons, I believed that, rather than invoking the MAC, Bank of America's best option, and the best option for the system, was to work with the Federal Reserve and the Treasury to develop a contingency plan to ensure that the company would remain stable should the completion of the acquisition and the announcement of losses lead to financial stress, particularly a sudden pullback of funding of the type that had been experienced by Wachovia, Lehman, and other firms.Ultimately, on December 30, the Bank of America board determined to go forward with the acquisition. Third, based on our staff analysis of the legal issues, we believed that it was highly unlikely that Bank of America would be successful in terminating the contract by invoking the MAC. Rather, an attempt to invoke the MAC would likely involve extended and costly litigation with Merrill Lynch that, with significant probability, would result in Bank of America being required either to pay substantial damages or to acquire a firm whose value would have been greatly reduced or destroyed by a strong negative market reaction to the announcement.

Second, an attempt to invoke the MAC after three months of review, preparation, and public remarks by the management of Bank of America about the benefits of the acquisition would cast doubt in the minds of financial market participants--including the investors, creditors, and customers of Bank of America--about the due diligence and analysis done by the company, its capability to consummate significant acquisitions, its overall risk-management processes, and the judgment of its management. First, in light of the extreme fragility of the financial system at the time, the uncertainties created by an invocation of the MAC might have triggered a broader systemic crisis that could well have destabilized Bank of America as well as Merrill Lynch. This information led to a series of meetings and discussions among Bank of America, the regulatory agencies, and Treasury. During these discussions, Bank of America's CEO, Ken Lewis, told us that the company was considering invoking the Material Adverse Event clause in the acquisition contract, known as the MAC, in an attempt to rescind its agreement to acquire Merrill Lynch.In responding to Bank of America in these discussions, I expressed concern that invoking the MAC would entail significant risks, not only for the financial system as a whole but also for Bank of America itself, for three reasons. In November, the possible destabilization of Citigroup was prevented by government action.

In short, the period was one of extraordinary risk for the financial system and the global economy, as well as for Bank of America and Merrill Lynch.Discussions Regarding the Possible Termination of Agreement to Acquire Merrill Lynch On December 17, 2008, senior management of Bank of America informed the Federal Reserve for the first time that, because of significant losses at Merrill Lynch for the fourth quarter of 2008, Bank of America was considering not closing the Merrill Lynch acquisition. In mid-October, an aggressive international response was required to avert a global banking meltdown. Later that month, Wachovia faced intense liquidity pressures which threatened its viability and resulted in its acquisition by Wells Fargo. That same week, Lehman Brothers failed, and American International Group was prevented from failing only by extraordinary government action.

The government-sponsored enterprises, Fannie Mae and Freddie Mac, were taken into conservatorship a week before the Bank of America deal was announced. It was subsequently approved by the shareholders of Bank of America and Merrill Lynch on December 5, 2008. The acquisition was scheduled to be closed on January 1, 2009.As you know, the period encompassing Bank of America's decision to acquire Merrill Lynch through the consummation of the merger was one of extreme stress in financial markets. As with similar transactions, the transaction was reviewed and approved by the Federal Reserve under the Bank Holding Company Act in November 2008. I did not play a role in arranging this transaction and no Federal Reserve assistance was promised or provided in connection with that agreement. I will attempt in this testimony to respond to some of the questions that have been raised.BackgroundOn September 15, 2008, Bank of America announced an agreement to acquire Merrill Lynch. I believe that the Federal Reserve acted with the highest integrity throughout its discussions with Bank of America regarding that company's acquisition of Merrill Lynch.

BOSTON, MA, Jun 25 (MARKET WIRE) -- Patrick J. Haraden of Norwell, Senior VP of employee benefit services atLongfellow Benefits, will discuss employee benefits on "McNamara OnMoney" on WATD 95.9 FM in Marshfield, Mass., on Saturday, June 27, from8:30 to 10:30 a.m.The show is also broadcast live on the Web at will answer listener questions about health insurance and otheremployee benefits, as well as how the American Recovery and ReinvestmentAct (ARRA) and the new COBRA subsidy provisions will impact employers andemployees. Thefollowing are important factors that could cause the Company's actualresults to differ materially from those expressed or implied by suchforward-looking statements: changes in the worldwide price of mineralcommodities, general market conditions, risks inherent in mineralexploration, risks associated with development, construction and miningoperations, the uncertainty of future profitability and the uncertaintyof access to additional capital.For more information please contactQuri Resources, Inc.Email ContactCopyright 2009, Market Wire, All rights reserved.-0-. Withoutlimitation, statements regarding potential mineralization and resources,exploration results, and future plans and objectives of the Company areforward-looking statements that involve various degrees of risk. holds mining rights and mineralconcessions throughout Ecuador. These concessions are in different stagesof exploration and development.Founded by professionals with unmatched expertise in the mining industryin South America and North America, we are working for a better futurefor our customers, neighbors, and shareholders.