Bank of America Corp. has broken free of the government’s grip.
The Charlotte, N.C.-based institution announced today that it has repurchased $45 billion in Troubled Asset Relief Program investments. It also paid the government $190 million in accrued dividends on the repurchased preferred securities.
The repayment followed a “successful” securities offering of 1.3 million common equivalent securities that generated $19.2 billion in gross proceeds. Another $3 billion in assets sales will occur by the middle of next year.
The U.S. Treasury, however, continues to hold BoA common stock warrants issued as part of its TARP investments.
The Treasury has received a total of $118 billion in TARP repayments from U.S. banks so far and expects another $57 billion in repayments by the end of next year. In addition, around $15 billion in interest, dividends and warrant sales have been collected.
