Breaking News: Bank of America Announces It Is Refunding The US Government $45 Billion in TARP Funds

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Real Estate Agent with Ozark, Nixa, Republic & Willard Real Estate

Bank of America has just released a press releasing stating it is going to refund the U.S. Government $45 Billion in TARP funds, plus interest. 

Under the terms of the TARP agreement, Bank of America is repurchasing the 600,000 share of preferred stock it issued to the U.S. Treasury.  It plans to repay the $45 Billion using $26.2 Billion in excess liquidity, as well as $18.8 Billion in proceeds from the sale of "common equivalent securities" it plans to convert into common stocks.  It also plans to increase liquidity by $4 Billion through "asset sales" by June 30, 2010.

Could this be a sign that the company most notorious for dragging their feet on short sales could possibly be in a position to improve the speed by which they handle short sales?  Does this mean we might actually see some movement?  We can only hope.  I'll believe it when I see it.

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  1. Lanora Campbell 12/09/2009 09:32 AM
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Rainmaker
222,486
Brian Brumpton
Boise Idaho Real Estate
Keller Williams Boise

I don't know if it will have any effect on short sales.  As they wind down the bailout program and foreclosures continue to rise it would be nice to see the banks get more proactive. 

December 02, 2009 06:37 PM
Rainmaker
693,641
Lanre Folayan
Buy a home in Washington DC. Sell your DC Home Now
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC

Lina I am with you. I will believe it when I see it also. Thanks for sharing. Great post.

December 02, 2009 06:39 PM
Rainmaker
453,501
John Mulkey
Housing Guru
TheHousingGuru.com

Lina - Unfortunately, it may mean they don't want the government interfering in their business and telling them how to handle short sales and modifications.

December 02, 2009 06:53 PM
Ambassador
1,139,676
Paul Henderson
I always put my clients first in any transaction!
RE/MAX Professionals.

I think they are tired of the government telling them to improve. Where did they come up with the money by the way?

December 02, 2009 11:03 PM
Rainmaker
908,291
Bill Gassett
Metrowest Massachusetts Real Estate
RE/MAX Executive Realty

It will be interesting to see how BOA comes out of this mess with all the short sales they have botched over the last year.

December 03, 2009 07:44 AM
Rainer
8,123
Rick Bonetti
APR Referral Network

Thanks for the Twitter follow.  I like your tweets with link back to your AR blog.

December 03, 2009 07:16 PM
Rainmaker
398,537
Eric Bouler
Listening to your Needs
Gardner Realtors, Licensed in La.

They are a flawed company trying to do too many things. They have no niche.

December 03, 2009 08:21 PM
Rainmaker
84,834
Darren Stewart
Mortgage Investment Services Corporation

I believe you would have to somehow tie the handling of short sales to executive pay in order for that to improve !  no bonuses being decisioned until the short sale pipeline has been decided?  May get some of those on the fast track then.

December 04, 2009 08:53 AM
Anonymous #9
Anonymous
Anonymous

I also read through the comments. I think it means that they don't want the government telling them how much to pay their executives.

Happy end of year!

December 07, 2009 08:48 PM
Rainmaker
397,835
Kathryn Acciari
Realtor - CDPE, CIAS, Sturbridge MA Real Estate
RE/MAX Professional Associates, with offices in Sturbridge, Charlton, Auburn, Spencer, and Shrewsbury

Lina, I am holding my breath but not for too terribly long.  Thank you for sharing this announcement!

December 09, 2009 08:51 PM
Ambassador
1,139,676
Paul Henderson
I always put my clients first in any transaction!
RE/MAX Professionals.

I was looking for a new post from you and found this one again. In a refund you usually don't pay interest. Repay yes, refund no...

December 11, 2009 01:58 PM
Rainmaker
1,229,008
Michelle Gibson
REALTOR
Hansen Real Estate Group Inc.

Hi Lina - I just wanted to stop by and wish you a Happy & Healthy New Year!!!

January 01, 2010 12:34 PM
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Rainmaker
230,653

Lina Robertson Jones

REALTOR, Springfield MO Area Homes for Sale
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