Bank of America
wants to pay back this year $45 billion it received in bailout money from the U.S. Treasury, a report says.
The biggest U.S. bank by assets is on track to raise more than $35 billion in capital by the end of September, the
reports, citing people familiar with the matter. Bank of America must raise the capital before paying back the money it received from the U.S. government's Troubled Asset Relief Program.
Under the stress tests the U.S. government performed 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.
The bank disclosed earlier this week it had raised $13.47 billion by issuing stock, and together with the sale of its stake in
China Construction Bank
for about $7.3 billion, is more than halfway to reaching its capital raising goals.
People familiar with Bank of America's plans say talks to sell some of the bank's noncore assets are under way and, if the asset sales occur in the next few months, the bank will be able to fulfill the obligations of the stress tests and pay back TARP funds from its $173 billion of cash reserves, according to the