Bank of America is taking$20 billion in government aid due to obtaining Countrywide and Merrill Lynch. B of A received a second capital infusion from the U.S. government due to its $118 billion troubled recent purchase. Bank of America's lending division is suffered and having it's existing loans even causing issues.  Even with their $8.54 billion fund for their bad loans they are still in need of help.

     So now the U.S. goverment is thinking of setting up a government bank that would use federal funds to purchase the troubled assets from financial institutions.