Bank of America raises $13.47 billion per stress test stipulations
20 May 2009
Bank of America said it has raised $13.47 billion by selling new shares over the past two weeks, which has strengthened and diversified its capital structure.
The bank issued 1.25 billion shares since beginning the programme on Friday, 8 May at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed," said Joe Price, chief financial officer. "This strengthens and diversifies our capital structure."
The US government earlier this month to meet requirements set down by the ''stress test'' of soundness in the nation's largest banks had told the bank that it needed to raise $33.9billion more than any other US bank to weather the recession. (See: Stress test shows BankAm may need $34 billion to stabilise operations)
The bank was forced to seek more capital after the acquisition of rival Merrill Lynch.
Other US banks are in the process of raising cash by issuing new shares.