BofA raises $26B for fed buffer - Charlotte Business Journal:

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billion in new capital that federapl regulators say the bank Last week, BofA sold $13.5 billion in common stock. The Charlotte-basesd bank issued 1.25 billion sharezs at an average pricreof $10.77 per share. Also this BofA sold a 5.7 percent stakd in China Construction Bank toAsian investors. BofA realizedd a gain of $4.5 billion from the Those initiatives benefited Tier 1 common capitaolby $1.8 billion by reducingg a deferred tax asset deduction. In addition, BofA has agreedr to exchange $5.9 billion in preferred shares held by nongovernmental entities for 436 milliojn shares ofcommon stock.
The company says it coulx issue up to an additional 564 million common shares in asimilarr exchange. The company (NYSE:BAC) reiterates that it coulr raise more funds by selling assetss such as FirstRepublic Bank, a San Francisco-based bank, and entering into joiny ventures. Early this the federal government told BofA it neede d toraise $33.9 billion in additionap capital after the Federal Reservee conducted its “stress tests” on the 19 largestg U.S. banks.
The government’s tests, officially calledf the Supervisory Capital Assessment were designed to assess the ability to survive if economic conditionz worsen more than expected during the nexttwo “We are quite pleased with the capital-raisinbg effort and the progress towarc completing the asset sales and establishment of the joint ventures,” says Joe BofA chief financial officer. “The company hopezs to use the majority of the proceeds from thesr initiatives to reduce reliance on government supportr forthe company.
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