BoA wants to pay back bail out funds

May 21, 2009

, LONDON, May 21 – Bank of America wants to pay back 45 billion dollars (29 billion euros) in bailout cash received from the US government by the end of the year, the Financial Times in London reported Thursday.

Citing people familiar with the matter, the FT said the bank was on track to raise more than 35 billion dollars in capital by the end of September, which it must do before paying back funds received under the Troubled Asset Relief Programme (TARP).

BofA chief executive Ken Lewis refused to comment on the repayment details but told the newspaper: "Every single one of our investors wants us to repay the TARP money as soon as possible."

Following a "stress test" by US financial regulators, BofA was told it needed to raise 33.9 billion dollars in core capital as a buffer in the event of a weaker economy.

Since then, the bank has raised 13.5 billion dollars in an offering of its common stock, and sold its stake in China Construction Bank Corp (CCB), one of the largest Chinese banks, for 7.3 billion dollars before tax.

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