Skip to main content

Updated from Tuesday, May 19

Bank of America

(BAC) - Get Bank of America Corp Report

has raised $13.47 billion by issuing 1.25 billion shares at an average price of $10.77 a share.

"We're pleased to have this portion of our capital plan completed," said Chief Financial Officer Joe Price, in a statement late Tuesday. "This strengthens and diversifies our capital structure."

Several financial firms have been issuing shares now that the government has completed the "stress tests" it ran on the nation's 19 largest banks. It was determined that Bank of America would need additional capital of $33.9 billion, more than any other bank, to protect against losses if the economy worsened.

Bank of America launched a plan to raise the capital through the sale of assets and by selling stock. Last week it announced it had sold part of its stake in

China Construction Bank

to Asian investors for about $7.3 billion. Together with the sales of stock, the bank is now more than halfway to reaching its capital raising goals.

BofA executives have said they are mulling sales of the bank's Columbia asset management unit, as well as several other businesses. The bank previously said it planned to sell its First Republic Bank unit, which it inherited when it bought Merrill Lynch in January. Those sales could help raise $10 billion.

Additional capital could come from further stock sales and cash flow from operations in the coming quarters, Bank of America has said.

BofA shares closed Tuesday down 48 cents, or 4%, at $11.25.

Several other financial firms have issued shares following the stress tests, even some that were told by Washington that they

didn't need to raise any capital

Scroll to Continue

TheStreet Recommends

. Among the banks seeking funds were


(BBT) - Get BB&T Corporation Report


Capital One

(COF) - Get Capital One Financial Corporation Report



(KEY) - Get KeyCorp Report


US Bancorp

(USB) - Get U.S. Bancorp Report


Copyright 2008 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.