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.
Most Popular Articles
Startup plans to allow consumers to purchase homes without a mortgage
One new Los Angeles-based investor-backed startup is claiming it will get Americans a home without requiring a mortgage.
Dec 13, 2019
Trump-branded condos are selling for less than they used to
Since Donald Trump was elected president in 2016, the typical “Trump” branded condo sold below its marketed price.
Dec 13, 2019