BofA raises $13.5B in stock sale - Sacramento Business Journal:

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billion in a sale of commobn stock. The Charlotte, N.C.-based bank issued 1.25 billion sharesx at an average priceof $10.77 per share. “We’re pleasec to have this portion of our capitaklplan completed,” says Joe Price, chief financial officer. “Thiw strengthens and diversifies ourcapitaol structure.” The sale began May 8. Earlhy this month, federal regulators told BofA it needee toraise $33.9 billion in additional capital afted the Federal Reserve conducted “stress tests” on the 19 largest U.S. banks.
The officially called the Supervisory CapitalAssessment Program, were designedr to assess the banks’ ability to survivre if economic conditions worsen more than expectedd during the next two years. BofA’e capital needs are in the form of Tier 1 common according to the test resultsz andthe bank. In other areas, the bank meetsw capital requirements with anadequate buffer. BofA said it intendecd to raise capital through a combinatio of thefollowing measures: converting some preferred shares held by private investors to common stock, selling more common possibly selling some noncore business units and considering some jointf ventures.
The bank, which has said it plans to sell Firstr Republic Bank ofSan Francisco, recentl raised $7.3 billion from the sale of a 5.7 percen t stake in to Asian investors. BofA BAC) has received a total of $45 billiobn in taxpayer aid under the Troubled AssetRelierf Program, which is designed to thaw the creditf markets and boost the economy.