BofA likely to repay TARP in installments

Bank of America Corp. is likely to repay government bailout money in installments rather than as a lump sum, the bank's chief financial officer said today during an investor presentation.

Bank of America Corp. is likely to repay government bailout money in installments rather than as a lump sum, the bank’s chief financial officer said today during an investor presentation.
The Charlotte, N.C.-based bank, among the hardest hit by the economic downturn, is moving closer to being able to repay $45 billion it received as part of the government’s Troubled Asset Relief Program, CFO Joe Price said during a presentation at the Barclays Capital Global Financial Services Conference in New York.
Like nearly all banks, Bank of America has faced mounting loan losses as more customers fall behind on repaying debt.
Bank of America has received $45 billion as part of the government’s $700 billion program. As part of that money, Bank of America received $20 billion in January after CEO Ken Lewis requested it to help offset mounting losses at Merrill Lynch & Co, which it acquired Jan 1.
Other major financial firms t hat have repaid TARP so far, such as JPMorgan Chase & Co. and Goldman Sachs Group Inc., have opted to pay back all the money at once.
Price said the bank has also moved toward reducing or eliminating its reliance on other government lending and support programs put in place during the peak of the credit crisis to help stabilize financial markets.
Shares of Bank of America rose 2 cents to $17.01 in afternoon trading.