2009 Dividends to Government Will Total Approximately $2.8 Billion
CHARLOTTE, N.C., Feb. 17 /PRNewswire/ -- Bank of America Corporation today
announced that it made its first dividend payment to the U.S. government under
the Troubled Asset Relief Program.
The payment, totaling $402 million, reflects Bank of America's ongoing
commitment to paying back U.S. taxpayers. Today's payment represents the
dividend on the Fixed-Rate Cumulative Perpetual Preferred Stock issued in
connection with the $45 billion in government investments that Bank of America
received in late 2008 and early 2009.
Approximately $223 million relates to the federal government's $15 billion
investment in Bank of America made under the Capital Purchase Program of the
Troubled Asset Relief legislation and an additional $50 million relates to the
federal government's $10 billion investment in Bank of America as part of the
agreement to acquire Merrill Lynch & Co., Inc. The remaining $129 million
stems from the government's $20 billion investment on January 16 to help
facilitate the acquisition of Merrill Lynch. Total cash dividend payments to
the government in 2009 will reach approximately $2.8 billion.
"It is our intention to pay back these loans, as soon as possible," said
Bank of America Chairman and Chief Executive Officer Ken Lewis. "In the
meantime, we are using these funds to support the U.S. economy by extending
credit to individuals and businesses."
Bank of America extended more than $115 billion in new credit during the
fourth quarter of 2008, of which about $49 billion was in commercial non-real
estate; $45 billion was in mortgages; nearly $8 billion was in domestic card
and unsecured consumer loans; nearly $7 billion was in commercial real estate;
more than $5 billion was in home equity products; and approximately $2 billion
was in consumer Dealer Financial Services.
Bank of America also committed to assisting as many as 630,000 customers
to help them stay in their homes, representing more than $100 billion in
mortgage financing. In 2008, the company modified approximately 230,000 home
loans - representing more than $44 billion in mortgage financing. Bank of
America also modified nearly 700,000 credit card loans for borrowers
experiencing financial hardship last year.
Bank of America
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in the United States, serving more than 59
million consumer and small business relationships with more than 6,100 retail
banking offices, nearly 18,700 ATMs and award-winning online banking with
nearly 29 million active users. Following the acquisition of Merrill Lynch on
January 1, 2009, Bank of America is among the world's leading wealth
management companies and is a global leader in corporate and investment
banking and trading across a broad range of asset classes serving
corporations, governments, institutions and individuals around the world. Bank
of America offers industry-leading support to more than 4 million small
business owners through a suite of innovative, easy-to-use online products and
services. The company serves clients in more than 150 countries. Bank of
America Corporation stock is a component of the Dow Jones Industrial Average
and is listed on the New York Stock Exchange.
SOURCE Bank of America
CONTACT: Investors: Kevin Stitt, +1-704-386-5667; or Lee McEntire, +1-
704-388-6780; or Grace Yoon, +1-212-449-7323; Reporters: Scott Silvestri, +1-
980-388-9921, firstname.lastname@example.org, all of Bank of America