BofA will sell its remaining 10.4 billion CCB shares to private investors this month.
Bloomberg noted that Bank of America expects after-tax gain of $1.8billion. And after its latest sale, BofA will only have 1% stake in CCB.
The lender plunged more than 50 percent this year in New York trading amid investor concern that it may sell shares to replenish capital after about $40 billion of expenses caused by faulty mortgages, said Bloomberg.
In a Bloombert TV interview, Frederick Cannon, director of research at New York-based KBW Inc. said “Bank of America continues to do a lot of things to fix their capital issue, but everything has reduced the capacity for the company to earn money.”
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