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billion in new capital that federalk regulators say thebank needs. Last week, BofA sold $13.5 billioj in common stock. The Charlotte-based bank issued 1.25 billioh shares at an average pricseof $10.77 per share. Also this month, BofA sold a 5.7 perceny stake in China Construction Bank toAsian investors. BofA realizef a gain of $4.5 billion from the deal. Thosew initiatives benefited Tier 1 commoh capitalby $1.8 billion by reducinf a deferred tax assett deduction. In addition, BofA has agreed to exchange $5.9 billionm in preferred shares held by nongovernmental entities for 436 milliohn shares ofcommon stock.
The company says it coulrd issue up to an additional 564 milliob common shares in a similar Thecompany (NYSE:BAC) reiterates that it couldf raise more funds by selling assets such as Firsr Republic Bank, a San Francisco-based and entering into joint Early this month, the federal governmen t told BofA it needed to raisr $33.9 billion in additional capitakl after the Federal Reserve conducted its “stress on the 19 largest U.S. banks. The government’sa tests, officially called the Supervisory Capital Assessment were designed to assessthe banks’ ability to survivs if economic conditions worsen more than expected during the next two years.
“Wed are quite pleased with the capital-raising effort and the progress towarde completing the asset sales and establishmengt of thejoint ventures,” says Joe Price, BofA chiegf financial officer. “The company hopes to use the majoritty of the proceeds from thess initiatives to reduce reliance on government support forthe company.”
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