Bank of America Corp., the nation’s largest bank, received $45 billion in federal funds from the Troubled Asset Relief Program (TARP), plus a government guarantee to limit losses on $118 billion of troubled assets, including those acquired by Bank of America’s purchase of Merrill Lynch.[1] Bank of America repaid its TARP loans in December 2009, escaping the compensation limits imposed on companies that had received “exceptional” government assistance.[2]

Bank of America’s highest-paid executive in 2009 was not its retiring CEO Ken Lewis, but Thomas Montag, president of global banking and markets, who received nearly $30 million.[3] The bulk of Montag’s 2009 compensation came from a sign-on stock award he received when he was first hired by Merrill Lynch, a month before it was purchased by Bank of America.[4] Meanwhile, Lewis, who retired on Dec. 31, 2009, stands to collect some $83 million in retirement.[5]

Less than one year after receiving TARP funds, Bank of America was lobbying against new regulations on derivatives trading, including meeting with Rep. Barney Frank (D-Mass.), who chairs the U.S. House Financial Services Committee.[6] A type of derivative known as credit default swaps fueled the financial crisis, by creating large losses and linking the health of many financial institutions to each other.

Overall, Bank of America spent $3,680,000 lobbying in 2009.[7] The bank lobbied federal officials and lawmakers on financial issues that include the creation of a consumer protection agency for financial products, over-the-counter derivatives and credit default swaps, TARP oversight and executive compensation.[8]

According to bank representative James Mahoney, Bank of America agrees with the “policy direction” of a Consumer Financial Protection Agency (CFPA) and is not lobbying for or against the agency. The bankers association, where Bank of America has its headquarters, takes a different view. “Our industry group is beyond adamantly opposed to the CFPA. We’d use whatever word is stronger than adamant,” said Thad Woodard, president of the North Carolina Bankers Association whose members include Bank of America.[9]