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Bank of America pays back $45B owed to taxpayers

2009-12-10 05:05:48 (GMT) (Caymanmama.com - Banks & Banking News)

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Bank of America

Providence, Rhode Island (CaymanMama.com) — Making good on its promise to pay back taxpayers in government bailout funds, Bank of America Corp. repaid the entire $45 billion as part of the Troubled Asset Relief Program.

After announcing its arrangement with the U.S. Treasury to repay the program last week, Bank of America was able to fund the pay back using a combination of available cash and the sale of $19.29 billion of securities which were convertible into common stock.

In a statement, BofA’s CEO Ken Lewis said the bank successfully demonstrated a improvement in the economy, and said the company looks “forward to continuing to play a key role in the economic recovery.”

Bank of America was included in a vast group of hundreds of banking institutions that got government financial support through the TARP program.

According to the AP, “The bank received $25 billion as part of the initial round of investments when the credit crisis peaked last fall. It received an additional $20 billion in January shortly after it acquired Merrill Lynch in what was a heavily scrutinized deal.”

Bank of America’s repayment of the government funds clears the bank from government restrictions that deterred the company from looking for a new CEO, including executive pay limitations.



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