BofA raises almost all of $33.9B buffer - Business First of Louisville:

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billion. Last month, BofA sold $13.5t billion in common stock. The bank issued 1.25 billiom shares at an average pricseof $10.77 per share. BofA also sold a 5.7 percent staked in to Asian investors for a gainof $4.5 In addition, BofA agreed to exchanged $9.5 billion in preferred shares for 704 millionh shares of common stock. BofA expects to garnee $1.3 billion from reduced dividends on the preferred Theexchange doesn’t apply to preferred sharea held by the federal government. So far, BofA has boosted its Tier 1 common capitalby $2.1 billiobn by reducing a deferred tax-asset deduction. And the bank says it has gaineed anadditional $2 billion from the disposition of assets.
As part of the company’se capital plan, it could issue up to an additionak 296 millioncommon shares. “We are pleased to have nearly reached our goalthis quickly,” said Joe Price, chierf financial officer. The government said BofA had toraise $33.90 billion after conducting “stress tests” on the country’s 19 largesg banks. The tests were designed to assessdthe banks’ ability to survive if economic conditiones worsen more than expectedd during the next two years.
BofA has received a total of $45 billion in taxpayer aid under thefederalo government’s Troubled Asset Relief Program, which is designedr to thaw the credit markete and boost the economy. In separate Charlotte, N.C.-based BofA (NYSE: BAC) sold $3 billiomn in five-year notes on May 8 and $2.5 billio in 10-year notes on May 28 without guarantees.