The bank already has diluted shareholders through a $10 billion offering of 455 million shares in October 2008 and $13.5 billion equity offering in May. It exchanged $5.9 billion in preferred shares for common stock the same month, further increasing the size of the bank's float.
The move also is surprising given that the bank is struggling to maintain regular profitability outside of one-time gains, and has yet to name a permanent successor to Kenneth Lewis, whom the bank ousted as CEO in October.
Without a recent record of success, a leader or a vision, B of A's future without government aid is cloudy. Its defenders will argue that the bank is paying back the taxpayers, but they're wrong: the bank's investors are footing the bill.
The move also is surprising given that the bank is struggling to maintain regular profitability outside of one-time gains, and has yet to name a permanent successor to Kenneth Lewis, whom the bank ousted as CEO in October.
Without a recent record of success, a leader or a vision, B of A's future without government aid is cloudy. Its defenders will argue that the bank is paying back the taxpayers, but they're wrong: the bank's investors are footing the bill.
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