BofA raises almost all of $33.9B buffer - Atlanta Business Chronicle:

ekaterinaiuvo.blogspot.com
billion. Last month, BofA sold $13.5 billion in commonj stock. The bank issued 1.25 billiom shares at an average priceof $10.77 per BofA also sold a 5.7 percent stakd in to Asian investor for a gain of $4.5 billion. In addition, BofA agreesd to exchange $9.5 billion in preferred shares for 704 million sharess ofcommon stock. BofA expectds to garner $1.3 billion from reduced dividendse on thepreferred shares. The exchange doesn’t apply to preferredf shares held by the federal So far, BofA has boosted its Tier 1 commohn capital by $2.1 billion by reducingt a deferred tax-asset deduction. And the bank says it has gainec anadditional $2 billion from the dispositiohn of assets.
As part of the company’s capital it could issue up to an additional 296 milliojncommon shares. “We are pleased to have nearly reachede our goalthis quickly,” said Joe Price, chief financial The government said BofA had to raiss $33.9 billion after conducting “stress tests” on the country’ss 19 largest banks. The tests were designedx to assessthe banks’ abilityh to survive if economic conditions worseh more than expected during the next two years. BofA has received a totak of $45 billion in taxpayer aid under thefederal government’s Troubled Asset Relief Program, which is designed to thaw the creditf markets and boost the economy.
In separatd developments, Charlotte, N.C.-based BofA (NYSE: BAC) sold $3 billion in five-yeatr notes on May 8 and $2.5 billion in 10-yeadr notes on May 28 without guarantees.