Bank of America plans $3bn share issue

Bank of America is planning to issue new shares in exchange for existing preferred stock and debt that has lost value during the downturn this year.

The bank's latest quarterly filing said it was considering issuing up to $3bn of common stock in order to retire junior subordinated debt and preferred shares. "The uncertainty in the market evidenced by, among other things, volatility in credit spread movements, makes it economically advantageous at this time to consider retirement of issued junior subordinated debt and preferred stock," BofA said in the filing. The move has been done to reduce the interest the group pays on its debt. It comes following a sharp fall in the bank's share price which is down more than 50% this year. ...