Bank of America Corp. gave more assurances of its capital position Wednesday, announcing that its board had authorized it to repurchase up to 75 million shares of stock.
The Charlotte company is allowed to spend up to $3.75 billion to buy stock over the next 12 to 18 months. It is not required to make any repurchases, and it said the authorization was granted largely so that a plan approved in January 2007 could be replaced.
Most companies are avoiding share repurchases to shore up capital as credit quality continues to worsen. B of A, which did not buy back stock during the second quarter, also said Wednesday that it would maintain its quarterly dividend at 64 cents a share. The dividend is payable Sept. 26 to shareholders of record on Sept. 5.
