BofA claims it has "plenty of options" to raise needed "$34B in new capital"

[Amerigo Vespucci]

U.S. Says Bank of America Needs Cushion of $33.9 Billion

http://www.nytimes.com/2009/05/06/business/06stress.html?_r=1&partner=rss&emc=rss

By LOUISE STORY and ERIC DASH
Published: May 5, 2009

The government has told Bank of America it needs $33.9 billion in capital to withstand any worsening of the economic downturn, according to an executive at the bank.

If the bank is unable to raise the capital cushion by selling assets or stock, it would have to rely on the government, which has provided $45 billion in capital through the Troubled Asset Relief Program.

It could satisfy regulators’ demands simply by converting non-voting preferred shares it gave the government in return for the capital, into common stock.

But J. Steele Alphin, the bank’s chief administrative officer, said Bank of America would have plenty of options to raise the capital on its own before it would have to convert any of the taxpayer money into common stock.

[Uben]

1. Just raise credit card rates to 75%

...and charge $100 late fees. That ought to do it!

[newfie11]

2. yep credit card interest 19%

For no reason! That card is history!

[havocmom]

3. How much could they save by lowering compensation to the top 3%?

And stop buying other businesses up?

[gratuitous]

4. Plenty of options! Options out the wazoo!

Right now a team of flunkies is checking the couch cushions.