- The Washington Times - Thursday, December 10, 2009

CHARLOTTE, N.C. (AP) | Bank of America Corp. said Wednesday it has repaid the entire $45 billion it owed U.S. taxpayers as part of the Troubled Asset Relief Program.

Bank of America, which announced its agreement with the Treasury Department to repay TARP last week, funded the repayment through a combination of cash on hand and the sale of $19.29 billion of securities that would convert into common stock. The stock increase remains subject to shareholder approval.

In a prepared statement, CEO Ken Lewis said the company cleared a key hurdle in demonstrating the economy’s broader health, and said the bank looks “forward to continuing to play a key role in the economic recovery.”

Bank of America was among hundreds of banks that received government support through the government’s TARP program. The bank received $25 billion as part of the initial round of investments when the credit crisis peaked last fall. It received an additional $20 billion in January shortly after it acquired Merrill Lynch in what was a heavily scrutinized deal.

Repayment of the funds frees the Charlotte, N.C.-based bank from the government restrictions that have hampered its search for a new CEO, including executive pay limitations.

Bank of America has been searching for a successor to Mr. Lewis since it announced in late September that he planned to retire on Dec. 31.

Bank of America’s board met Tuesday to discuss potential replacements for Mr. Lewis, but no decision has been made.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide