By David Mildenberg
May 27 (Bloomberg) — Bank of America Corp. has raised almost $26 billion in response to U.S. stress tests, about 76 percent of the goal, including a $5.9 billion accord to convert privately held preferred shares into common stock.
The stock swaps would add 436 million common shares, the Charlotte, North Carolina-based bank said today in a statement. The company said it may issue 564 million more common shares through such swaps.
Regulators have ordered Bank of America to raise $33.9 billion, the biggest capital gap among the 19 lenders subjected to stress tests. The bank said May 19 it raised $13.5 billion by issuing 1.25 billion shares at an average of $10.77 each. Plans include establishing joint ventures and selling First Republic Bank and Columbia Management Group.
“We are quite pleased with the capital-raising effort and the progress toward completing the asset sales and establishment of the joint ventures,” Joe Price, the bank’s chief financial officer, said in a statement.