The move reflects the influence of the federal government over the functioning of a financial institution in which it doesn’t own a stake. The federal government’s increased involvement in BoA’s day-to-day operations began when the company started discussions to acquire Merrill Lynch.
The Federal government instructed the nation’s 10 bank holding companies to boost in fresh capital to the maximum of $75 billion, following stringent stress tests. BoA was asked to raise capital up to $34 billion – as quoted in financialexpress.com
