Bank of America is buying Merrill Lynch. It should be all over the papers tomorrow, along with Lehman Brothers going into bankruptcy.
I mentioned Temasek's ratchet provisions in a previous post on its investment in Merrill Lynch.
I estimate that netting out the ratchet provision, Temasek's investment in Merrill Lynch was done at approximately $21 a share [Not verified]. Given that BofA is paying about $29 a share for Merrill, that's good news for Singapore taxpayers.
Then again, BofA is paying for Merrill Lynch in what looks to be an all stock deal. The credit crisis is hardly close to finishing; we could be looking at further losses. Who knows? Perhaps even BofA might go belly up further along the line.