Thursday, 15 September 2011

Bank of America sells half its stake in Bank of China


Bank of America sells half of its China bank stakeBank of America sells half its stake in Bank of China
Bank of America is selling almost half of its ten percent share in China Construction Bank for $ 8.3 billion in cash. The largest U.S. bank said the sale could help strengthen its capital base to meet the new standards, known as Basel III.

13100000000 decided to sell shares in the Chinese bank to an investor group that has no name. The sale is expected to be completed in the third quarter and must create an after-tax gain of $ 3.3 billion. There are plans to increase its core capital of 3.5 million dollars.

The sale is the latest move of the bank to the boos of their capital base, and the CFO (Chief Financial Officer) Bruce Thompson said he had added about $ 5.8 billion of its own funds during the monthof August, "with the help of non-core assets sales and other actions. "Information on the sale of shares of Bank of America increased by 5.3 percent in New York.

In the last week of actions encountered cost concerns you may have a capital increase out with one hand to offer not only to collect the Basel III, but to deal with problems List million mortgages on their books . Last week in the U.S. billionaire Warren Buffett said his Berkshire Hathaway will invest $ 5 billion in Bank of Americaand allowed the management team strappingly the bank.

No comments:

Post a Comment