Bank of America raises $13.5 billion thru stock sale

May 19, 2009 by · Leave a Comment
Filed under: Stock Market News 

Gosh I would like to know “who” or “whom” made those stock purchases.  Well it is good that they are raising that capital required to keep the proper reserve ratio.  For some reason I believe that those purchases were “sponsored” in some way, I can’t see with all this uncertainty, private investors would make such large purchases while the banks still have undisclosed assets / liabilities on their balance-sheet and they still have TARP money and stock warrants as well.   Very interesting.

News (Forbes): 

Bank of America Corp. said Tuesday that in less than two weeks it has raised $13.47 billion through the sale of 1.25 billion shares at an average price of $10.77 each.

“We’re pleased to have this portion of our capital plan completed,” said Chief Financial Officer Joe Price, in a statement Tuesday. “This strengthens and diversifies our capital structure.”

The government recently released the results of “stress tests” it ran on the nation’s 19 largest banks to determine if they would need additional capital to protect against losses should the economy worsen. It found that Bank of America would need an additional $33.9 billion, more than any other bank reviewed.

Bank of America launched a plan to raise the capital through asset sales and stock offers. It recently sold part of its stake in China Construction Bank to Asian investors for about $7.3 billion, which together with the stock sales, put the bank well past the halfway mark in its capital raising goals.

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