Bank of America raises $13.5 billion selling stock

CHARLOTTE, NC -- Bank of America Corp. said Tuesday that in less than two weeks it has raised $13.47 billion through the sale of 1.25 billion shares at an average price of $10.77 each.

"We're pleased to have this portion of our capital plan completed," said Chief Financial Officer Joe Price, in a statement Tuesday. "This strengthens and diversifies our capital structure."

The government recently released the results of "stress tests" it ran on the nation's 19 largest banks to determine if they would need additional capital to protect against losses should the economy worsen. It found that Bank of America would need an additional $33.9 billion, more than any other bank reviewed.

Bank of America launched a plan to raise the capital through asset sales and stock offers. It recently sold part of its stake in China Construction Bank to Asian investors for about $7.3 billion, which together with the stock sales, put the bank well past the halfway mark in its capital raising goals.

BofA executives have said they are mulling sales of the bank's Columbia asset management unit, as well as several other businesses. The bank previously said it planned to sell its First Republic Bank unit, which it inherited when it bought Merrill Lynch & Co. in January. Those sales could help raise $10 billion.

Additional capital could come from further stock sales and cash flow from operations in the coming quarters, Bank of America has said.

BofA shares closed Tuesday down 48 cents, or 4 percent, at $11.25.