Bank of America to repay bailout funds
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By Adam Leveridge. |  |
Thursday, 03, Dec 2009 09:59
Bank of America has said it will repay $45 billion (£27 billion) worth of debt to the US government after receiving a huge bailout.
The move would mean the bank would no longer be restricted by the government on executive pay.
The bank received the loans after the purchase of Merrill Lynch, at the height of the global financial crisis. Bank of America said it would use $26.2 billion (£15.7 billion) in available cash and also sell $18.8 billion (£11.3 billion) in securities to pay back the debt.
"We appreciate the critical role that the US government played last fall in helping to stabilise financial markets, and we are pleased to be able to fully repay the investment, with interest," said Kenneth D Lewis, chief executive officer and president.
"As America's largest bank, we have a responsibility to make good on the taxpayers' investment, and our record shows that we have been able to fulfil that commitment while continuing to lend. We believe that this is good news, not only for the US taxpayer and our company, but for the country as it is a milestone indicating that public policy has succeeded in helping our industry and the economy begin to recover."
Mr Lewis is due to retire at the end of the year. He will receive no salary or bonus for 2009.