CHARLOTTE -- Bank of America Corp. said yesterday that it has repaid the entire $45 billion it owed U.S. taxpayers as part of the Troubled Asset Relief Program.
Bank of America, which announced its agreement with the U.S. Treasury to repay TARP last week, financed the repayment through a combination of cash on hand and the sale of $19.29 billion of securities that would convert into common stock. The stock increase remains subject to shareholder approval.
Repayment of the money frees the bank from the government restrictions that have hampered its search for a new chief executive, including executive-pay limitations.
Bank of America has been searching for a successor to Ken Lewis since it announced in late September that he planned to retire Dec. 31. The bank's board met Tuesday to discuss potential replacements, but no decision has been made. Scott Silvestri, a Bank of America spokesman, said yesterday that a decision will be made "in the near future."
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