NEW YORK (TheStreet) --
Bank of America officials over the weekend contacted
China Construction Bank to say they were considering selling more of their stake, according to Reuters, which cited a report in the South
China Post.
In August, Bank of America announced a deal to sell half its stake in
China Construction Bank, netting the company a gain of $3.6 billion, with a $3.5 billion boost to the bank's Tier 1 capital.
Bank of America CEO Brian Moynihan
The reports follows Bank of America's 10-Q filing with the Securities and Exchange Commission last Wednesday, when the company said it was considering issuing 400 million common shares as part of a plan to retire preferred shares and long-term debt. Following that announcement, Atlantic Equities analyst Richard Staite said that although that move would result in short-term earnings accretion for Bank of America, it would do little to address a $45 billion shortfall at the end of 2012 under the Basel III capital requirements. The requirements will be fully implemented in January 2019.
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