Bank of America has been one of the hardest hit banks during the credit crisis and recession. And Ken Lewis should be the banking CEO that gets hit the hardest (in the face), but no on is stepping up to the plate... investors did split his title... he is now only CEO instead of Chairman and CEO. Way to go.
B of A has received more than $45 billion in government aid already and the stress test revealed that they may need to raise as much as $34 billion more. The bank will have the chance to raise the capital on its own before going to the government again, but coming up with $34 billion from private investors is no easy task.
Bank of America could also shed assets if needed, such as a portion of its stake in China Construction Bank. A lockup provision expires tomorrow that would allow Bank of America to sell about a third of its stake and hopefully fetch around $8 billion. They'll probably sell it back to China... they pretty much own everything anyway.
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