Bank of America to pay back $45 billion in bailout funds
Bank of America announced that it would pay back 45 billion dollars in government bailout money it received under the Troubled Asset Relief Program (TARP). According to BofA, it has already “paid $2.54 billion in dividends to the U.S. Treasury on the TARP investment.” Paying back the bailout money will save the company 3.6 billion dollars in annual dividend payments. The funds to pay back the government will be achieved by using 26.2 billion dollars in “excess liquidity”, plus 18.8 billion dollars from the sale of “common equivalent securities.”
Bank of America is not the first recipient of bailout money to repay the government in full. JPMorgan Chase., Morgan Stanley, American Express, Goldman Sachs, U.S. Bancorp, Capital One Financial, Bank of New York Mellon, State Street, and BB&T Corp have also repaid TARP money.
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