Bank of America raises $26B for fed buffer – Washington Business Journal:

billion in new capital that federal regulators say the bank Last week, Bank of America sold $13. 5 billion in common stock. The Charlotte-based bank issuecd 1.25 billion shares at an average priceof $10.77 per Also this month, Bank of Americqa sold a 5.7 percent stakd in to Asian investors. According to The Wall Streett Journal, which cited individuals familiar withthe matter, BofA receivefd $7.3 billion from the deal. In Bank of America has agreed toexchange $5.9 billionb in preferred shares held by nongovernmentao entities for 436 million shares of commo n stock.
Bank of America says it could issue up to an additional 564 million common shares in a similar Thecompany (NYSE:BAC) reiterates that it coulrd raise more funds by selling assets such as First Republidc Bank, a San Francisco-based bank, and entering into joinrt ventures. Early this month, the federal governmentg told BofA it needed toraiser $33.9 billion in additional capital afterd the Federal Reserve conducted its “stress tests” on the 19 largesgt U.S. banks.
The government’s tests, officially called the Supervisor CapitalAssessment Program, were designed to assess the ability to survive if economic conditionw worsen more than expected during the next two “We are quite pleasedr with the capital-raising effort and the progresa toward completing the assert sales and establishment of the joint ventures,” said Joe Bank of America chief financiap officer. “The company hopes to use the majorityt of the proceeds from these initiatives to reduc e reliance on government support forthe company.
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