Posted: Thursday, Jun. 25, 2009
Bank of America says it has now bolstered its capital position by more than the $33.9 billion required by the government.
The Charlotte, N.C.-based bank this week completed the exchange of $3.9 billion in depository shares for common stock. It has also now exchanged $10.7 billion in preferred stock for common shares.
Those debt exchanges, coupled with common stock offerings and asset sales, were used to improve the bank's capital base.
Last month, the government said Bank of America Corp. needed an additional $33.9 billion in reserves to protect itself from potential losses should the economy worsen. The review was part of “stress tests” the government ran on 19 of the nation's largest financial firms.
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