Fed's won't let BAC tank until they get most of their cash back. Then GS/MS will send in the dogs and destroy the Merrill franchise. This will be the only way for them (GS/MS) to justify their share prices going forward. They won't be able to lever up their balance sheets like in the past even without the TARP funds on their books. Ken Lewis will be working at McD's after this takes place. Manager of the month will be the best he can do.
My bet is they tank BAC to smear Ken Lewis, so his credibility gets shot and nobody will listen to him testify against Bernanke, Paulson, Geithner and the gang. They would also take away a good chunk of his wealth that way, so maybe he can't afford his high-priced attorneys.