Bank of America pares Chinese bank stake to boost capital


Faced with an order from regulators to raise nearly $35 billion in additional capital, Bank of America (BAC) decided to sell part of its stake in China Construction Bank, the world's second-biggest bank by market share. The move will raise some $7.3 billion.

By selling its stake in CCB, Bank of America is showing that closing the yawning gap between the capital it has and what regulators say it needs will involve some choices its executives clearly don't relish. But it's also clear they see the status quo as unsustainable. "Our game plan is to get the government out of our bank as quickly as possible," CEO Ken Lewis said in conference call with investors, The New York Times reported.