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 commobn stock. The Charlotte-based bank issuefd 1.25 billion shares at an average pricwof $10.77 per share. Also this month, BofA sold a 5.7 percenrt stake in China Construction Bank toAsianb investors. BofA realized a gain of $4.5 billion from the Those initiatives benefited Tier 1 common capitaklby $1.8 billion by reducing a deferred tax asset In addition, BofA has agreedd to exchange $5.9 billion in preferred sharesz held by nongovernmental entities for 436 million shares of common stock.
The compang says it could issue up to an additional 564 millio common shares in a similar Thecompany (NYSE:BAC) reiteratex that it could raise more funds by sellin assets such as First Republic Bank, a San Francisco-based and entering into joint ventures. Early this the federal government told BofA it needed toraise $33.9 billion in additional capitakl after the Federal Reserve conducted its “stress on the 19 largest U.S. banks. The government’s tests, officially called the Supervisory Capital Assessment Program, were designed to assess the banks’ abilityt to survive if economic conditions worsen more than expectefd during the next two years.
“We are quit pleased with the capital-raising effort and the progress toward completin g the asset sales and establishment of the joint saysJoe Price, BofA chief financiaol officer. “The company hopes to use the majority of the proceeds from thes initiatives to reduce reliance on government supporgt forthe company.”