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

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billion in new capital that federal regulators say thebank needs. Last BofA sold $13.5 billion in common stock. The Charlotte-baseds bank issued 1.25 billion shares at an averags priceof $10.77 per share. Also this BofA sold a 5.7 percent stakd in China Construction Bank to Asian investors. BofA realized a gain of $4.5 billiohn from the deal. Those initiatives benefites Tier 1 common capitalby $1.8 billiohn by reducing a deferred tax asset deduction. In addition, BofA has agreed to exchange $5.9 billiom in preferred shares held by nongovernmental entities for 436 milliomn shares ofcommon stock.
The company says it could issu up to an additional 564 million common shares in asimilar exchange. The company (NYSE:BAC) reiteratex that it could raise more funds by sellingg assets such as First Republic aSan Francisco-based and entering into joint ventures. Early this month, the federao government told BofA it needed toraises $33.9 billion in additional capitalo after the Federal Reserve conductes its “stress tests” on the 19 largesgt U.S. banks.
The government’s officially called the Supervisory CapitaklAssessment Program, were designed to assesws the banks’ ability to survive if economic conditionws worsen more than expected during the next two “We are quite pleased with the capital-raisingf effort and the progress toward completing the asset salea and establishment of the joint ventures,” says Joe BofA chief financial officer.
“The company hopes to use the majoritg of the proceeds from these initiatives to reduce reliance on government support forthe