Provided by the Business Insider:
This Fed request came at the end of July, before the latest crisis in Bank of America's stock. Since then, the stock has plummeted further, and the bank has finally begun to take steps to address the situation, selling preferred stock and options on about 7% of itself to Warren Buffett.
It is not clear how issuing a "tracking stock" on Merrill Lynch would help the bank. Tracking stocks usually do not give their holders ownership of the underlying company's assets, and they usually don't include any voting or control rights.
Actually selling real stock in Merrill Lynch would help, because it would raise cash and transfer some of the Merrill risk off of Bank of America's books.
The issuance of either security, a tracking stock or a real stock, would likely be viewed as a prelude to a full spinoff of Merrill Lynch. This would put a big smile on the faces of the folks who work for Merrill.