Bank of America Corp. has agreed to exchange another $14.7 billion of preferred stock into about 989 million common shares via public and private offerings as part of its bid to raise capital.
The effort is part of the push by the banking giant to increase common equity levels by $33.9 billion, a target set by the government after its stress tests that Bank of America has said it will easily surpass.
The Charlotte company said Thursday it had accepted $3.9 billion of preferred stock as part of its public offer to exchange up to 200 million shares of common stock for outstanding preferred stock. The company also disclosed Thursday that to date it has agreed with nongovernment private holders of preferred shares to exchange about $10.7 billion in aggregate of preferred shares into about 789 million common shares.
