Bank of America (BAC) says it’s raised $33 billion of the $33.9 billion demanded of it by the stress tests. Pretty impressive that just a few months ago seemed like it could be a slip away from out-and-out nationalization.
Here’s how it got there:
- $9.5 billion from preferred stock conversion.
- $13.5 billion from common stock sale
- Gain from the sale of China Construction Bank.
- $2.1 billion tax gain.
- $1.3 billion from dividend savings
- $2 billion from other dispositions.
The announcement, which is colorfully titled “Bank of America to Comfortably Exceed Capital Target” doesn’t explicitly give a timeline for leaving TARP (which may come sooner than any of us could’ve have expected just a couple months ago), but it says the goal is to unbridle itself from the government as soon as possible. It also notes that it’s sold non-FDIC guaranteed debt, a key TARP-removing requirement.