A press release from the locally headquartered financial institution said it will "comfortably exceed" the close to $34 billion requirement. The release also noted that the goal of the capital raise is to reduce government support for the company. "We are pleased to have nearly reached our goal this quickly," Joe L. Price, Bank of America's chief financial officer, said in the release. Calls to Bank of America were not returned by deadline.
Bank of America jump-started a variety of activities to raise capital, one of which is to encourage holders of perpetual preferred non-governmental shares to exchange holdings of approximately $9.5 billion of perpetual preferred stock into approximately 704 million shares of common stock. Other activities have included a raise of $13.5 billion from the direct sale of common stock, sale of shares in China Construction Bank, a $2.1 billion benefit from deferred tax asset due to Tier 1 Capital increase and benefits from other dispositions. The capital plan also includes the potential to issue an additional 296 million common shares.
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