CHARLOTTE, N.C. — Bank of America Corp. on Wednesday 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.
Via McClatchy-Tribune News Service.
