Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Netanyahu deletes tweet featuring photo of James Foley

Read more

THE WORLD THIS WEEK

The World This Week - 22 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 22 August 2014

Read more

FRANCE IN FOCUS

FRANCE IN FOCUS

Read more

FOCUS

Lifting the veil over China's air pollution

Read more

ENCORE!

Tango Takeover in Paris

Read more

WEB NEWS

Calls for ISIS media blackout after execution of James Foley

Read more

IN THE PAPERS

'Steely resolve of reporters exploited by pared-down employers'

Read more

BUSINESS DAILY

US judge calls Argentina bond swap offer illegal

Read more

  • French teenage girls held over Syria jihad plans

    Read more

  • Iceland issues aviation alert on volcano activity

    Read more

  • France will not be 'be pushed around' by Germany

    Read more

  • ‘European GPS’ satellites launched into wrong orbit

    Read more

  • Merkel in Kiev as aid convoy ‘returns to Russia’

    Read more

  • Suicide bomber targets Iraq intelligence HQ in deadly attack

    Read more

  • Video: Israel bombs kidnapping suspect’s home

    Read more

  • US brands journalist’s beheading a ‘terrorist attack’

    Read more

  • Ebola prompts Philippines to recall UN troops in Liberia

    Read more

  • Besieged by problems, Hollande faces unhappy return from summer holidays

    Read more

  • US sued over ‘deportation mill’ in New Mexico

    Read more

  • Colombian army and FARC rebels in face-to-face talks

    Read more

  • US National Guard starts to pull out of embattled Ferguson

    Read more

  • PSG fall flat once more against Evian

    Read more

  • US job market yet to recover from recession, says Fed Chair

    Read more

  • August 22, 1914: The bloodiest day in French military history

    Read more

  • Fear of Ebola sky-high among Air France workers

    Read more

  • US says Islamic State threat 'beyond anything we've seen'

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

Business

Bank of America says it has raised $26 billion for capital buffer

Latest update : 2009-05-28

The largest US bank by deposits, Bank of America, says it is "well on its way" to meeting the required "capital buffer" issued after "stress tests", having raised almost $26 billion towards the official Federal Reserve target of $33.9 billion.

AFP - Ailing Bank of America said Wednesday it has raised almost 26 billion dollars and was close to meeting its Federal Reserve-mandated requirement for a capital buffer.
  
The US banking giant said its was "well on its way" to reaching the Fed target of 33.9 billion dollars in fresh capital authorities said it needs as a buffer in the event of a sharper downturn in the recession-mired economy.
  
Bank of America said it had taken a number of steps to raise the required capital.
  
"Combined, these initiatives have raised almost 26 billion dollars, or 76 percent of the total, toward the (Federal Reserve) buffer of 33.9 billion dollars," it said.
  
Bank of America, the largest US bank by deposits, was among 19 major banks that recently underwent "stress tests" by authorities to determine their capacity to withstand more severe shocks from the global financial and economic crisis.
  
The Charlotte, North Carolina-based bank said it would meet the capital demands by selling assets and other actions in order to repay the US Treasury.
  
The federal government has already pumped 45 billion dollars in bailout cash into the ailing institution since the financial crisis, which originated in the United States, accelerated in October 2008.
  
BofA announced last week it had raised of 13.5 billion dollars through issuing 1.25 billion shares in a common stock offering.
  
It has also sold a third of its stake in China Construction Bank Corp (CCB), one of the largest Chinese banks, for 7.3 billion dollars.
  
Those initiatives benefited Tier 1 common capital, a measure of a bank's financial strength, by 1.8 billion dollars by reducing the deferred tax asset deduction, the company said in a statement.
  
In addition, Bank of America said it had struck agreements "with certain holders of (non-government) perpetual preferred shares" to exchange their holdings of some 5.9 billion dollars of preferred stock into approximately 436 million shares of common stock.
  
Those actions agreements resulted in a total benefit to Tier 1 common capital of 5.9 billion dollars.

Date created : 2009-05-27

COMMENT(S)