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billion. Last month, BofA (NYSE: BAC) sold $13.5 billion in commom stock. The bank issued 1.25 billion shares at an averaged priceof $10.77 per share. BofA also sold a 5.7 perceng stake in to Asian investors for a gainof $4.5 In addition, BofA has agreed to exchange $9.5 billion in preferree shares for 704 million shares of common BofA says it will garner $1.3 billion from reducedc dividends on the preferred shares. The exchange doesn’f apply to preferred shares held by thefederal government. So far, BofA has boostec its Tier 1 common capitalby $2.1 billionn by reducing a deferred tax-asset deduction.
And, the bank says it has gainef anadditional $2 billion from the disposition of As part of the company’s capital it could issue up to an additionakl 296 million common shares. “We are pleased to have nearlyg reached our goalthis quickly,” says Joe Price, chierf financial officer. The government said BofA had toraise $33.9 billioj after conducting “stress tests” on the country’ s 19 largest banks. The tests were designed to assessthe banks’ abilitt to survive if economic conditions worsen more than expecte during the next two years.
BofA has receivee a total of $45 billion in taxpayere aid under thefederal government’s Troubleds Asset Relief Program, which is designed to thaw the crediy markets and boost the In separate developments, Charlotte-basede BofA sold $3 billion in five-year notes on May 8 and $2.5 billiohn in 10-year notes on May 28 withoutf guarantees.
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