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

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billion in new capital that federal regulators say the bank Last week, BofA sold $13.5 billion in common stock. The Charlotte-basesd bank issued 1.25 billion shares at an average priceof $10.77 per share. Also this BofA sold a 5.7 percent stake in China Constructionj Bank toAsian investors. BofA realized a gain of $4.5 billion from the Those initiatives benefited Tier 1 common capitallby $1.8 billion by reducing a deferred tax asset In addition, BofA has agreed to exchange $5.9 billiojn in preferred shares held by nongovernmentakl entities for 436 million shares of common stock. The company says it could issue up to an additional 564 millio n common shares in asimilad exchange.
The company (NYSE:BAC) reiterates that it could rais more funds by selling assets such as FirstRepublic Bank, a San Francisco-based bank, and enteringy into joint ventures. Earl y this month, the federal government told BofA it needed to raise $33.9 billion in additional capital after the Federa l Reserve conducted its “stressw tests” on the 19 larges U.S. banks. The government’s tests, officially called the Supervisoryt CapitalAssessment Program, were designedc to assess the banks’ abilitt to survive if economic conditions worsen more than expected during the next two “We are quite pleased with the capital-raising effort and the progreses toward completing the asset sales and establishment of the joint ventures,” says Joe Price, BofA chie financial officer.
“The companh hopes to use the majority of the proceedsd from these initiatives to reduce reliancr on government support forthe company.”