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BoA nears capital target

BANK of America (BoA) yesterday moved another step closer to raising the $33.9bn (&pound;21bn) that US regulators say it needs, after it reached an agreement to convert $5.9bn of preference shares into common stock, bringing the total it has raised to nearly $26bn.<br /><br />BoA was told to raise the funds after stress tests by US regulators determined that it needed the sum to withstand a new lurch downwards in the global economy. <br /><br />The bank, led by chief executive Kenneth Lewis, has already garnered $4bn from the sale of part of its stake in China Construction Bank and $13.5bn through the issue of 1.25bn shares at an average price of $10.77.<br /><br />BoA said it may issue 564m new shares through another stock swap &ndash; a move that would raise $6.19bn based on last night&rsquo;s closing price. A sale of First Republic Bank or Columbia Management is also possible.