BUSINESS BRIEFING / BANKS
TIMES WIRE REPORTS
Bank of America Corp. said it raised $5.9 billion through the conversion of preferred shares for common stock as part its plan to bolster its capital base.
The federal government, as a result of its “stress tests” on Bank of America and 18 other banks, told the Charlotte, N.C., bank that it should raise $33.9 billion in capital to boost its reserves in case the economy worsens further.
It has now raised $26 billion and said it could issue as many as 564 million more common shares through additional preferred-share exchanges.
