Bank Of America Recent Changes

1. Bank Of America Recent Changes Ghada AbdelKhalek

2. Acquisition of Countrywide • the Corporation acquired Countrywide through its merger with a subsidiary of the Corporation. • Countrywide shareholders received 0.1822 of a share of Bank of America Corporation common stock in exchange for one share of Countrywide common stock.

3. Acquisition of Countrywide (cont) • 583 million shares of Countrywide common stock were exchanged for 106 million shares of the Corporation’s common stock. This represents approximately two percent of the Corporation’s outstanding common stock. • The acquisition of Countrywide significantly improved the Corporation’s mortgage originating and servicing capabilities

4. Acquisition of Merrill Lynch & Co., Inc • Bank of America Corporation announced it has agreed to acquire Merrill Lynch & Co., Inc. in a $50 billion all-stock transaction • Bank of America would exchange .8595 shares of Bank of America common stock for each Merrill Lynch common share. • Bank of America expects to achieve $7 billion in pre-tax expense savings, fully realized by 2012

5. Acquisition of Merrill Lynch &co(Cont) • The transaction is expected to close in the first quarter of 2009. • By adding Merrill Lynch’s, Bank of America would have the largest brokerage in the world with more than 20,000 advisers and $2.5 trillion in client assets

6. After the acquisition of Merrill Lynch,Bank of America would be • The number one underwriter of global high yield debt • the third largest underwriter of global equity • the ninth largest adviser on global mergers and acquisitions.

7. Common Stock IssuanceAnd Declaration of Dividends • Bank of America issued 455 million shares of common stock at $22.00 per share resulting in proceeds of $9.8 billion, net of underwriting expenses. • In October 2008, the Board of Directors (the Board) declared a regular quarterly cash dividend on common stock of $0.32 per share, payable on December 26, 2008 to common shareholders of record on December 5, 2008, as compared to the quarterly cash dividend on common stock of $0.64 per share paid on September 26, 2008 to common shareholders of record on September 5, 2008.

8. The creation of a Home Retention Program In connection with the Housing and Economic Recovery Act of 2008, Bank of America will modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for up to 400,000 Countrywide Financial Corporation (Countrywide) customers.

9. the FASB released exposure drafts which would amend SFAS 140 the proposed amendments would eliminate the concept of a QSPE (Qualified special purpose entities) and change the standards for consolidation of VIEs (variable interest entities). the amendments would likely result in the consolidation of certain QSPEs and VIEs that are not currently recorded on the Consolidated Balance Sheet. Recent Accounting Developments

10. Results of Recent Accounting Development • These consolidations may result in an increase in outstanding loans and on-balance sheet funding, higher provision and allowance for credit losses as well as changes in the timing of recognition and location of where items are classified on our income statement. In addition, regulatory capital amounts and ratios may be negatively impacted based on the outcome of the FASB and regulatory agencies’ decisions.