Tuesday, August 30, 2011

BofA Cashes In Its China Chips

Bank of America announced on Monday that it would sell about half of its China Construction Bank holdings to a group of unidentified investors, in a deal expected to raise $8.3 billion.

The deal, which came just days after Warren E. Buffett agreed to invest $5 billion in the bank, is the latest asset sale for the beleaguered financial company. Over the last month, Bank of America has sold its Canadian credit card division and has put its European card operation on the block, as it continues to clear noncore assets from its books.

The moves come amid recent fears that Bank of America lacks sufficient capital, concerns that its chief executive, Brian T. Moynihan, has tried to allay.

On Monday, Bank of America highlighted the deal’s effect on capital levels. Bruce R. Thompson, the bank’s CFO, said in the statement that the deal would increase its Tier 1 capital by $3.5 billion...

http://dealbook.nytimes.com/2011/08/29/bank-of-america-sells-stake-in-china-construction-bank/?ref=business

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