BofA Repayment Delayed Over Disagreement
October 24, 2009 by Mark Ellis
Filed under Business
The timing of the disagreement is difficult for the bank, as President Obama’s so-called “pay czar” has just set a variety of restrictions on executive compensation that has lowered compensation for the top employees of Bank of America and six other large firms receiving government aid.
Bank of America wishes to return $45 billion to the government, which would entail the entire investment that the government made in the bank, stating that it has raised $40 billion in new equity since May and will be able to survive alone. However, federal officials have expressed concern over the bank’s ability to absorb losses and has sought to replace at least some of the money with new capital beyond the $40 billion.
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