BofA hope to pay TARP by yearend

After some of the top banks were reported to pay back the TARP soon, Bank of America has expressed desire to pay back the whole TARP money worth $45bn by the end of the year.  Just a couple of days ago, the bank successfully raised $14bn in funds from issuing common shares and so far, they are on track to raising up to $35bn by September.  BofA has also sold its stake in China’s Construction Bank, which collected some $7.3bn and there are some more of its assets it could sell.  Whether the bank will be allowed to pay back the money by the government is another story.  After all, it is one of the most troubled firms who received one of the biggest government bailouts.

Bank CEO Ken Lewis said this week in a UK-US conference held this week:

“Every single one of our investors wants us to repay the Tarp money as soon as possible.”

Source: Financial Times


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