MR pointed to a comment on Calculated Risk on BofA's buyout of Merrill Lynch:
My take on the B of A buyout is that Hank is piling up all the **** into one huge **** on B of A's books so that when they go under it is clearly too big to fail and can be handled in one fell swoop.
If the Fed is reading this they will need to go into BofA soon and break it up. Unfortunately, they do not have the mandate and are not legally allowed to do so. My opinions on TBTF are here and a discussion of breaking up a big financial institution are here (mostly in response to Fannie Mae/Freddie Mac.)
My thinking is that when the current crisis is over, regulators will be looking at the consolidated financial companies and how its evolved form can threaten financial markets.