Bank of America to repay TARP ($45 billion), raise cash

[The Straight Story]

Bank of America to repay TARP, raise cash

NEW YORK – Bank of America Corp. said Wednesday it plans to repay its $45 billion in government bailout funds in the next few days, a move that will help the troubled bank recruit a new CEO.

The bank said in a statement it would use available cash and raise $18.8 billion in capital to repay the money, which it received during the height of the credit crisis last year and after its purchase of Merrill Lynch & Co. earlier this year.

Bank of America has been searching for a successor to CEO Ken Lewis since the bank announced in late September that he planned to retire on Dec. 31. But the bank, burdened with government restrictions and close oversight after accepting the Troubled Asset Relief Program funds, has so far been unable to sign a new chief executive.

"It removes the stigma that we've had as a company," spokesman Bob Stickler said of the planned repayment. "We become more attractive to a CEO candidate. Whether that means we get somebody external is impossible to say."

The bank has said it was considering candidates from inside and outside the company. Stickler said a decision is expected "in the near future."

http://news.yahoo.com/s/ap/20091202/ap_on_bi_ge/us_bank_of_america_tarp_repayment

Wow, if I could get a loan for $45 billion and repay it less than a year later people would probably wonder how I was able to do so....

[TK421]

1. Shit...I would be more than happy with 8 grand right now!

[DJ13]

2. Translation

If we cant dangle tens, or even hundreds of millions of dollars to attract an experienced crook no one wants to run the company.

[crazyjoe]

6. so, your complaining that they are paying us back the money?

you just can't please some people

[bluestateguy]

3. If they are expecting a pat on the back they can forget it

Having said that, it will be nice to get some of that taxpayer money back.

[michreject]

4. They raised my interest rate to 11.99%

From 7.99%. Sons of bitches.

[notesdev]

5. They do it by ripping off their customers and cooking their books

BofA is neck-deep in every rotten business practice known to man. You name the sordid banking practice, they're right there at the top of the list of its practicioners.

[Nikki Stone1]

7. Maybe this explains why their CD rates are crap

.

[notesdev]

10. Yup

and money market rates, and savings account rates, and they levy punitive fees on their poorest customers (those who can't make a fairly high average balance threshold), and of course the CC rate game that's going on. Meanwhile they are borrowing the money they lend at 0%.

Oh also, they are among those who got caught re-ordering deposits to maximize overdraft fees.

Quite a rap sheet for a company that - if it weren't committing accounting fraud AND sucking off the taxpayer teat - is insolvent and should have been put into receivership a long time ago. And I haven't even touched the topics of securities fraud and insider trading, omg don't get me started.

[AllentownJake]

8. It means they plan on doing less lending

If you are willing to dilute your shares and send cash for an early payment for a loan it means you feel it is better than lending he money.

Kind of defeats the purpose of all the bailouts etc which was to get banks to lend.

[rucky]

11. That's so old-fashioned.

Banks - lending money. :rofl:

A new CEO will raise their stock price and make shareholders happy.

[itsrobert]

9. Yeah, I'll take that loan

Deposit it and earn interest for a year and fully repay the loan. How much interest would I earn on $45 Billion in a year?

[orwell]

12. But...but...

...nobody was supposed to pay us back. What is going on here. Who am I going to hate now?

There must be something else I can rant about...