BofA Reportedly Meets TARP Exit Requirements

Bank of America BAC the Dow component and largest U.S. bank by assets, has reportedly told federal regulators that it has met the final condition in repaying its $45 billion in bailout funds that it received under TARP. The report initially ran in the Financial Times on Sunday. By reducing its stake in BlackRock BLK and selling rights to acquire shares in China's construction bank, Bank of America has moved to closer to the $3 billion exit requirement, the FT reported. Bank of America can also book a tax gain for paring its BlackRock holdings. If the bank failed to meet the exit requirements set forth by the Federal Reserve, it would be forced to issue more shares, diluting earnings in the process.