Bank of America Completes TARP Payback

CHARLOTTE, N.C. (TheStreet) -- Bank of America (BAC) said Wednesday that it has completed its repayment of more than $45 billion in taxpayer support.

As announced last week, Bank of America used $19.29 billion from a stock offering, and other available capital to repurchase 1.8 million preferred shares owned by the Treasury Department.

"We owe taxpayers our thanks for making these funds available to the nation's financial system and to our company during a very difficult time," departing CEO Ken Lewis said in a statement. "Now that we have cleared this significant hurdle, which demonstrates the strength of our company, we look forward to continuing to play a key role in the economic recovery and helping to meet the changing needs of our customers and clients."

While completing the transaction took only a week, Bank of America must still repurchase related warrants, get shareholder approval to increase its outstanding share count, complete $3 billion worth of asset sales and issue $1.7 billion worth of stock to employees as part of its agreement.

The $45 billion Treasury investment was made in October 2008 as part of the Troubled Asset Relief program. Bank of America also paid the Treasury about $190 million in accrued dividends through the quarter-to-date.

Bank of America shares were up 4 cents at $15.45 in recent trading.

-- Written by Lauren Tara LaCapra in New York.

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