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Bank of America to Repay Entire $45B in TARP Funds

December 2, 2009

by The TopStock Team

Headline Alert

TARP Update: Bank of America to Repay $45 Billion

In a press release, Bank of America (BAC) confirms it will be allowed to repay the entire $45 billion under TARP.

Bank of America will repay the $45 billion by using $26.2 billion in excess liquidity and $18.8 billion from the proceeds of the sale of "common equivalent securities," which will take place on December 7th.

Shareholders would be asked at a special meeting to be held within 105 days of issuance to approve an increase in the authorized shares outstanding in order to allow the "common equivalent securities" to be converted into common stock.

Bank of America agreed to increase equity by $4B through asset sales to be approved by the Board of Governors of the Federal Reserve and contracted for by June 30, 2010.

BAC is trading up $0.54 to $16.19 (+3.45%) in after-hours market

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