Bank of America capital raising campaign continues
Bank of America (BAC) made another multibillion-dollar sale on Monday. BofA sold roughly 13.1 billion common shares of China Construction Bank in a private transaction with a group of unnamed investors. The sale netted BofA $3.3 billion after taxes and is expected to close in the third quarter. The Charlotte, N.C.-based banking giant still owns 5% of CCB. Bruce Thompson, chief financial officer at BofA, said the sale generated $3.5 billion in Tier 1 common capital and reduced the bank's risk-weighted assets by $7.3 billion under the Basel I rules. "This month alone, through noncore asset sales and other actions, we expect to generate approximately $5.8 billion in additional Tier 1 common capital and reduce risk-weighted assets by approximately $16.1 billion under Basel I," Thompson said. Since the start of the year, BofA stock lost half of its value on fears of undercapitalization. Last week, Warren Buffett injected $5 billion into the bank with a massive stock purchase. With the sale of CCB shares Monday, BofA stock climbed higher than $8. Write to Jon Prior. Follow him on Twitter @JonAPrior.