BofA said on Thursday that it hoped to meet the governmentâs November 9 deadline for obtaining the capital through other measures â including raising $17bn (£11bn) through the sale of new equity and the conversion of preferred stock held by institutional investors into common equity.
(MarketWatch) -- Bank of America (BAC:13.51, +0.82, +6.5%) Chief Financial Officer Joe Price said late Thursday that the company will sell 1.25 billion new common shares as the lender tries to raise capital to meet requirements from the government's stress test. Price said the stock will be sold through an "ATM program," in which securities are sold through "normal stock trading," he explained. "We would access the market over time, with the goal of optimizing pricing and timing and price execution," Price added. Bank of America also plans on generating roughly $10 billion in gains from sales of businesses including First Republic, Columbia Management and a through a joint venture. "That leaves us with approximately $7 billion or so, which we think can be satisfied by our actual financial performance over the next six months," Price said. The government said earlier on Thursday that Bank of America needs to raise $33.9 billion in new capital
I was expecting shit like this to happen. But I always thought the price would go down. :] Why don't they just sell 10 Billion more shares. Then they would be up $6 AH"s.
Financial sector is being manipulated by none other than our government as we know it. so much for capitalism lol.
The Fed/gov. orchestrated the run up in bank stocks prior to this so called stress tests to provide better prices for the dilution. Little of the run up makes sense, but now comes the next question. Who in their right mind would buy any of the new shares being issued?
EXACTLY RIGHT, I was thinking the same EXACT thing this past week, the results they had weeks ago but manipulated the entire banking index to move higher so they could issue new stock at better prices. Fu$king pathetic...