Bank of America Corp. said it will "comfortably" exceed the government's $33.9 billion capital-raising mandate, with the company putting its current total at $33 billion.
The financial-services giant noted Tuesday it has now entered into agreements to swap $9.5 billion perpetual preferred stock for 704 million common shares, boosting Tier 1 common capital by that $9.5 billion.
The company announced last week that it reached deals to exchange $5.9 billion of the preferred not held by the government for 436 million shares and that it was offering other holders to swap into as much as 200 million common shares. Tuesday's announcement tops that target, and the company can still swap other perpetual preferreds not offered yet into 296 million shares.
Bank of America's mandated capital-raising amount was by far the most of the 19 companies stress tested by the federal government earlier this year. Its efforts have included $13.5 billion from a common-stock sale and a $7.3 billion gain from selling a stake in China Construction Bank Corp.
As it has said previously, Bank of America plans to use much of the money being raised to reduce its reliance on government support.
Shares of Bank of America, which had about 6.4 billion common shares in the first quarter before the capital-raising efforts began, was up 4 cents to $11.25 premarket. The stock is down 20% this year.