Bank of America seems to be in line for another injection of TARP funds. That would make it the second big bank--Citi was the first--to receive a second tranche of taxpayer funds. Bank of America took $25 billion in the first tranche; it's unclear how much more it will get. Citi has so far taken $45 billion. The issue at Bank of America is, of course, Merrill Lynch. It is facing billions of dollars in write-downs on a variety of assets mortgages that will likely result in big losses. 

This is an opportunity of sorts for the government. It just might step up and exert an even stronger hand in affairs. Certainly, regulators have had a big influence on some major decisions recently at Citi, which is selling a large stake in Smith Barney and other assets. Keep an eye on the terms of the injection. We may see the government get a little more aggressive in dictating how the funds are deployed. There's a chance this could get politicized.

For more:
- here's a MarketWatch article

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Bank of America news from FierceFinance
TARP news from FierceFinance