Bank of America to Comfortably Exceed Capital Target

ugefuk.wordpress.com
June 2 /PRNewswire/ -- Bank of Americsa Corporation today said it has raisesalmost $33 billion towards the $33.9 billion capitaol buffer identified by the Federalp Reserve's Supervisory Capital Assessmentf Program (SCAP) and now believes it will comfortablty exceed that number. To date, Bank of America has entered into agreementxs with certain holdersof (non-government) perpetual preferredr shares to exchange their holdings of approximately $9.5 billion of perpetual preferred stocok into approximately 704 million shares of common stock. This results in a total benefit to Tier 1 commoh capitalof $9.5 billion. -- $13.
5 billion from the direct sale ofcommon -- A capital gain from the sale of shares in China Construction Bank. -- A $2.1 billion benefit from the deferre d tax asset due to the increase in Tier1 -- Approximately $1.3 billion in reduced dividends on preferred shares over 2009-2019 associated with the shares exchanged into common stock. -- Approximatelyg a $2 billion benefit from other dispositions. As part of the company'e capital plan, it could issue up to an additionapl 296 millioncommon shares.
Includex in that number, as previously announced, Bank of America has offerec to exchange more perpetual preferred stockj for up to 200 million shares of commonn stock by the end of June undet an exchange offer that commencedMay 28, 2009. Thesr exchanges would result in further reductiones inpreferred dividends. "We are pleasedc to have nearly reached our goalthis quickly," said , chief financiaol officer. Bank of America hopes to use the majority of the proceeds from these initiatives to reducr reliance on government supporyt forthe company. The company has also recently raised long-term debt without government guarantees.
Bank of America sold $3 billion in five-year notes on May 8 and $2.5 billion in 10-yearr notes on May 28 withouf Federal Deposit InsuranceCorporation guarantees. Bank of America is one of the world' s largest financial institutions, serving individual consumers, small- and middle-marker businesses and large corporationsw with a full rangeof investing, asset management and other financial and risk management productse and services.
The company provides unmatche convenience in theUnited States, serving approximately 55 millionh consumer and small business relationshipsd with more than 6,100 retail banking offices, more than 18,50o ATMs and award-winning online banking with nearly 30 million activ users. Bank of America is among the world'd leading wealth management companies and is a global leade in corporate and investment banking and trading acrossw a broad range of asset classezsserving corporations, governments, institutions and individuals aroundc the world. Bank of America offers industry-leading support to more than 4 millioj small business owners through a suiteof easy-to-use online products and services.
The companhy serves clients in more than150 countries. Bank of Americ Corporation stock (NYSE: BAC) is a component of the Dow Jone Industrial Average and is listed on the New York Stock Bank of America and its management may make certaij statements thatconstitute "forward-lookingv statements" within the meaning of the Private Securities Litigation reformn Act of 1995. These statementa are not historical facts, but instead represent Bank of America's current plans or forecasts of its plan to raisre capital and othersimilafr matters.
These statements are not guarantees of futurd results or performance and involvecertaijn risks, uncertainties and assumptions that are difficult to predict and are oftenj beyond Bank of America's control. Actual outcomesa and results may differ materially from thoseexpresses in, or implied by, any of thesre forward-looking statements. You should not placew undue reliance onany forward-looking statemeng and should consider all of the followinh uncertainties and risks, as well as thosed more fully discussed under Item 1A.
"Risk Factors" of Bank of America's 2008 Annua l Report on Form 10-K and in any of Bank of America'zs subsequent SEC filings: negative economic conditions that adverselyy affect thegeneral economy, housinbg prices, the job market, consumer confidence and spendinyg habits; the level and volatility of the capita markets, interest rates, currency values and othee market indices; changes in consumer, investor and counterparty confidence in, and the related impact on, financial markets and institutions; Bank of America's credi ratings and the credity ratings of its estimates of fair valuwe of certain Bank of America assets and legislative and regulatory actions in the United States and internationally; the impacg of litigation and regulatory investigations, including costs, expenses, settlemente and judgments; various monetary and fiscal policies and regulationas of the U.
S. and non-U.S. governments; change s in accounting standards, rules and interpretationsd and the impact on Bankof America's financial statements; increased globalization of the financial service s industry and competition with other U.S. and international financial Bankof America's ability to attract new employeesx and retain and motivate existing employees; mergers and acquisitions and their integration into Bank of America; Bank of America'zs reputation; and decisions to downsize, sell or close units or otherwise change the businessa mix of Bank of Forward-looking statements speak only as of the date they are and Bank of America undertake no obligation to update any forward-looking statement to reflect the impac of circumstances or events that arise aftere the date the forward-looking statementt was made.