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| Economy |
| BofA pays back TARP |
| 2009-12-10 |
| Bank of America Corp. today said it has sent the U.S. Treasury $45 billion to repay U.S. taxpayers for all loans under the Troubled Asset Relief Program. The bank announced the plan to pay back the government aid last week. The repayment comes after the completion of a securities offering that raised $19.3 billion. To repay TARP, Bank of America repurchased all of the preferred shares issued to the Treasury. It also paid the government $190 million in dividends owed on the preferred securities. The Treasury continues to hold warrants to buy Bank of America common stock that were issued as part of the preferred shares. The bank hasn't announced a plan to buy those back. In addition to buying back the shares, the government also has required Bank of America to raise $3 billion by selling assets. The sales must be approved by the Federal Reserve Board and under contract by June 30. The bank is also raising $1.7 billion by issuing restricted stock in lieu of a portion of cash to certain employees as part of year-end bonuses. After paying back TARP and taking the other actions, the bank said it would have a Tier 1 Capital ratio of 11 percent, well above the 6 percent required by regulators. Its Tier 1 common capital ratio, another measure of the bank's ability to absorb losses, would be at 8.4 percent. |
| Posted by:Fred |
| #3 ...After signing the papers on our house last month, I figure about a hundred long of that is mine... Mike |
| Posted by: Mike Kozlowski 2009-12-10 09:29 |
| #2 Well now that its been laundered through BOA - it's now the |
| Posted by: CrazyFool 2009-12-10 08:12 |
| #1 Which will be promptly |
| Posted by: ed 2009-12-10 06:59 |