Washington - Investors were anxiously awaiting a fourth- quarter financial report from Bank of America Friday after the US government announced a 20-billion-dollar investment to help the bank digest its takeover of Merrill Lynch.

In addition to the investment, which the Treasury Department will provide in exchange for the bank's preferred stock at an 8-per-cent interest rate, the US government will also "provide protection against the possibility of unusually large losses" at the bank.

The guarantee covers assets totalling about 118 billion dollars.

A Treasury Department statement noted that the majority of the assets in question were acquired in the purchase of Merrill Lynch.

Bank of America bought financially troubled Merrill Lynch in a surprise move in September for 50 billion dollars.

However, continuing losses in Merrill Lynch's market value since the takeover have caused stresses on Bank of America's overall finances.

The US government previously gave Bank of America 25 billion dollars in financial support.

"With these transactions, the US government is taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy," the US government statement read.

Bank of America is set to release its fourth quarter results at 7 am (1200 GMT). (dpa)