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BofA Raises $13.5B With Share Sale

Bank takes big stride towards meeting 'stress test' condition

By Rob Quinn, Newser Staff

Posted May 20, 2009 4:55 AM CDT

(Newser) – Bank of America has sold shares to fill $13.5 billion of the $34 billion capital hole the Fed's "stress test" uncovered in the bank's balance sheet, Marketwatch reports. The bank—taking advantage of a 40% jump in its share price over the last month—issued 1.25 billion shares at an average price of $10.77 as part of its "at-the-market" program, which sold shares at or near prevailing prices.

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Bank of America has raised $13.5 billion over the last two weeks with a massive share sale. (AP Photo/Nell Redmond)

"We are comfortable with our current capital position," BofA chief Ken Lewis said recently. The federal stress test "asks what if the economy does much worse than most experts project." (AP Photos/Bebeto Matthews, file)

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The worst is over for Bank of America and it will have absolutely no problem raising more capital. - Kim Yong Tae, head of overseas investment at Korea's Yurie Asset Management Inc.

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BofA Raises $13.5B With Share Sale