News - National
Bank of America to repay government bailout
Posted: Dec 2, 2009 3:43 PM by Associated Press
Bank of America says it plans to repay its government bailout funds and raise capital in the coming days.
The bank has issued a statement Wednesday saying it would pay back the $45 billion in government loans it received during the credit crisis last year and after the purchase of Merrill Lynch & Co. earlier this year. The move would allow Bank of America, which is trying to recruit a new CEO to succeed the retiring Ken Lewis, to free itself from government restrictions on executive pay that come along with bailout funds.
Bank of America said it would use $26.2 billion in available cash and would also sell $18.8 billion in securities.
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