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Bank of America exceeds $33.9bn capital cushion

<div>Bank of America yesterday said it has built more than the $33.9bn (&pound;20.7bn) capital cushion demanded by federal regulators.<br /><br />The bank said it exceeded the buffer by conducting an exchange offer under which it expects to issue 200m shares.<br /><br />In total, it has completed exchanges of $14.7bn in preferred stock for common equity, adding to the buffer required by the government following a &ldquo;stress test&rdquo; of the bank&rsquo;s ability to weather a deep recession.<br /><br />The exchanges follow other capital actions by the North Carolina-based bank, mainly the issuance of common stock and a sale of part of its stake in China Construction Bank.<br /><br />Bank of America has received $45bn in capital injections from the Treasury Department&rsquo;s Troubled Asset Relief Programme (Tarp) and has indicated it would like to begin repaying these funds by the end of the year.</div>