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B of A, JPMorgan, others raise $19 billion

Financial Law     updated  2009/06/02 08:58

Bank of America Corp, JPMorgan Chase & Co and several other banks said they have raised more than $19 billion as lenders scramble to extricate themselves from Washington's grip.

Banks are raising capital as investor sentiment for the sector improves and, in many cases, to show regulators they are capable of functioning without government support.

"Markets are providing an avenue for banks of all sizes and stripes to raise money unless you are at death's door," said Gary Townsend, co-founder of Hill-Townsend Capital in Chevy Chase, Maryland. "The market also seems to be making an assessment that credit problems are manageable and that the environment is improving. In my view, that is correct."

JPMorgan sold $5 billion of stock, Morgan Stanley $2.2 billion and American Express Co $500 million after the Federal Reserve on Monday imposed capital-raising requirements on large banks hoping to repay bailout funds.

Goldman Sachs Group Inc, which also hopes to exit the Treasury Department's Troubled Asset Relief Program, sold $1.9 billion of its stake in Industrial and Commercial Bank of China.

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