Run Hank Paulson Out of Town

The U.S. government is close to committing billions in additional aid to Bank of America Corp. as the nation's largest bank by assets tries to digest its Jan. 1 acquisition of Merrill Lynch & Co., according to people familiar with the situation.

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Any possible arrangement might protect Bank of America from losses on Merrill's bad assets. There would be a cap on the amount of losses the bank would have to absorb with the federal government being on the hook for the remainder, according to one person familiar with the matter.

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The talks with Bank of America were driven by Treasury Secretary Henry Paulson, people familiar with the matter said, because he was concerned that without help the deal wouldn't close, leaving Merrill adrift. The merger did close Jan. 1 with the understanding the two sides would hammer out a plan, said a person familiar with the talks.

Hank is working for the bankers, not the taxpayers.

Do As I Say, Not As I Do

So says the world's largest emitter of greenhouse gases:

U.S. Treasury Secretary Henry Paulson urged China to drop tariffs on environmental equipment, saying trade barriers are hindering efforts to clean up a nation that has 16 of the world's 20 most polluted cities.

``There's something that doesn't seem economically sensible and morally right'' about charging a tariff on clean technology, Paulson said after his speech today on energy and the environment at the Chinese Academy of Sciences in Beijing.

The only things that are economically sensible and morally right in Paulson's book are those that make him and his buddies more money. See Bear Stearns, where American taxpayers will bear the brunt of their losses if they exceed $1 billion. Based on Tuesday's subprime loss league table, their losses will.