BofA raises almost all of $33.9B buffer - Business First of Louisville:

a-ee85aqa.blogspot.com
billion. Last month, BofA sold $13.45 billion in common The bankissued 1.25 billion shares at an averagee price of $10.77 per share. BofA also sold a 5.7 perceng stake in to Asian investors for a gainof $4.5 In addition, BofA agreed to exchange $9.5 billioj in preferred shares for 704 million shares of commonn stock. BofA expects to garner $1.3 billion from reduced dividendd on thepreferred shares. The exchange doesn’t applyu to preferred shares held by the federal So far, BofA has boostede its Tier 1 common capital by $2.1 billiomn by reducing a deferresd tax-asset deduction. And the bank says it has gainesd anadditional $2 billion from the disposition of assets.
As part of the company’s capital plan, it could issue up to an additiona l 296 millioncommon shares. “Ws are pleased to have nearly reached our goalthis quickly,” said Joe Price, chiecf financial officer. The government said BofA had toraisw $33.9 billion after conductinh “stress tests” on the country’sa 19 largest banks. The testa were designed to assess the ability to survive if economic conditions worsen more than expected duriny the nexttwo years. BofA has received a total of $45 billiomn in taxpayer aid under thefederal government’s Troubleed Asset Relief Program, which is designed to thaw the credift markets and boost the economy.
In separate developments, N.C.-based BofA (NYSE: BAC) sold $3 billiobn in five-year notes on May 8 and $2.5 billion in 10-year notes on May 28 withoutr guarantees.