Bank of America has held exploratory talks with sovereign wealth funds in Kuwait and Qatar to sells its big share of China Construction Bank, sources tell Reuters.The 10 per cent stake in CCB is worth $17 billion.
These negotiations were expected as one way to raise some of the $50 billion BoA may need to meet new capital requirements, though they were not mentioned in Brian Moynihan’s investor call.
BoA shares are up over 2% in after hours, leading moderate gains across the market.
In the past week, however, shares are down a shocking 20% and over 50% year-to-date. Other problems include a $10 billion lawsuit from AIG, a rejected $8.5 billion mortgage settlement and increased costs related to Fannie and Freddie.