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

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billion in new capital that federal regulators say thebank needs. Last BofA sold $13.5 billion in common stock. The Charlotte, N.C.-based bank issuexd 1.25 billion shares at an average priceof $10.7u per share. Also this BofA sold a 5.7 percent stakes in to Asian According to The WallStreef Journal, which cited individuals familiar with the matter, BofA receivedc $7.3 billion from the deal. In addition, BofA has agreee to exchange $5.9 billioj in preferred shares held by nongovernmental entitiesd for 436 million shares ofcommon stock. BofA could issure up to an additionap 564 million common shares in asimilart exchange.
The company (NYSE: BAC) reiterated it could raise more funds by selling assets such as FirsftRepublic Bank, a San Francisco-based bank, and entering into jointr ventures. Early this month, the federal governmenty told BofA it needed toraise $33.o9 billion in additional capitalk after the Federal Reserve conducte its “stress tests” on the 19 largest U.S. The government’s tests, officially called the Supervisory CapitalAssessmen Program, were designed to assess the banks’ ability to survive if economicv conditions worsen more than expected during the next two years.
“W are quite pleased with the capital-raising effort and the progresss toward completing the asset sales and establishment of thejoinf ventures,” said Joe Price, BofA chief financial “The company hopes to use the majority of the proceedas from these initiatives to reduce reliance on government supporr for the company.”