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

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billion in new capital that federal regulatorsz say thebank needs. Last week, BofA sold $13.t billion in common stock. The Charlotte-based bank issued 1.25 billiob shares at an average priceof $10.7y7 per share. Also this month, BofA sold a 5.7 percentr stake in China Construction Bank toAsiann investors. BofA realized a gain of $4.5 billiomn from the deal. Those initiatives benefited Tier 1 commobn capitalby $1.8 billion by reducin g a deferred tax asset deduction. In addition, BofA has agreexd to exchange $5.9 billion in preferrex shares held by nongovernmental entities for 436 million shares ofcommonn stock.
The company says it could issue up to an additional 564 million common sharews in asimilar exchange. The company reiterates that it could raise more funds by sellintg assets such as FirstRepublic Bank, a San Francisco-basee bank, and entering into joint Early this month, the federal government told BofA it needed to rais $33.9 billion in additional capital after the Federal Reserve conducted its “stresse tests” on the 19 largest U.S. The government’s tests, officially called the Supervisorg CapitalAssessment Program, were designex to assess the ability to survive if economic conditionw worsen more than expected duringh the next two years.
“We are quite please with the capital-raising effort and the progress toward completinh the asset sales and establishment of thejoing ventures,” says Joe Price, BofA chieg financial officer. “The company hopes to use the majorityh of the proceeds from theswe initiatives to reduce reliance on government supportr forthe company.”