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.