The net loss at Bank of America alone was $1.79 billion, or 48 cents per share, and compared with a year-earlier profit of $268 million, or 5 cents a share. Net revenue increased 22 percent to $15.68 billion, the bank said.

At Merrill, the loss was $9.62 per share, driven by what Bank of America called "severe capital markets dislocations."

Results were announced hours after Bank of America won $20 billion of new capital from the government's $700 billion Troubled Asset Relief Program.

That capital infusion means Bank of America has now taken $45 billion of TARP money, the same amount as Citigroup Inc , which won its own rescue package in November. In connection with the package, Bank of America also slashed its quarterly dividend to 1 cent per share from 32 cents.

Bank of America sought government help to combat losses at Merrill, which it agreed to buy on September 15 after less than 48 hours of hurried talks. The original $19.4 billion transaction did not get government help. It closed on Jan 1.

(Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)