The Federal Reserve publicly announced its willingness to negotiate such an arrangement. Although subsequent developments obviated the need for a ring fence arrangement, the public announcement was perceived as benefiting Bank of America during the period of extreme market uncertainty in late 2008.
6 Wells Fargo benefited from a significant tax advantage in the Wachovia acquisition, while the Federal Deposit Insurance Corporation agreed to share some losses in the Washington Mutual portfolio in order to facilitate its acquisition by JPMorgan. 3  If anyone harbored remaining doubts, it was clear by October that the nation’s financial system faced not just severe liquidity problems, but a solvency crisis.