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

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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Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

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. 

Dec 02, 2009 06:37 PM #1
Lanre Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
How much is my Petworth DC House Worth?

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

Dec 02, 2009 06:39 PM #2
John Mulkey - Waleska, GA
Housing Guru

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.

Dec 02, 2009 06:53 PM #3
Paul Henderson
RE/MAX Professionals. - Tacoma, WA
I always put my clients first in any transaction!

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

Dec 02, 2009 11:03 PM #4
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

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.

Dec 03, 2009 07:44 AM #5
Rick Bonetti
APR Referral Network - Redding, CA

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

Dec 03, 2009 07:16 PM #6
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

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

Dec 03, 2009 08:21 PM #7
Darren Stewart
Mortgage Investment Services Corporation - Broken Arrow, OK

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.

Dec 04, 2009 08:53 AM #8

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!

Dec 07, 2009 08:48 PM #9
Kathryn Acciari
RE/MAX Professional Associates, with offices in Sturbridge, Charlton, Auburn, Spencer, and Shrewsbury - Sturbridge, MA
Realtor - CDPE, CIAS, Sturbridge MA Real Estate

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

Dec 09, 2009 08:51 PM #10
Paul Henderson
RE/MAX Professionals. - Tacoma, WA
I always put my clients first in any transaction!

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...

Dec 11, 2009 01:58 PM #11
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL

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

Jan 01, 2010 12:34 PM #12
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Lina Robertson Jones

REALTOR, Springfield MO Area Homes for Sale
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