Bank of America may get more aid

Bank of America Corp, the biggest US bank by assets, may get more aid from the government to help absorb losses tied to this month's acquisition of Merrill Lynch & Co, three people familiar with the matter said.

Details are likely to be disclosed on Jan 20, the people said. That's when Bank of America may post its first quarterly loss in 17 years as it digests the purchases of Merrill Lynch and Countrywide Financial Corp The combined company has already received $25 billion from the US.

Bank of America, based in Charlotte, North Carolina, told regulators in December the takeover might be abandoned because of Merrill's worse-than-expected results, said the people, who declined to be identified because the talks are private. The government insisted the transaction go forward because its collapse would create new turmoil in the financial system, they said.