Bank of America said to raise $7.3 billion
U.S. bank reduces stake in China Construction Bank in bid to shore up capital, reports say.
LONDON (CNNMoney.com) -- Bank of America has raised $7.3 billion from the sale of 13.5 billion shares of China Construction Bank, according to published reports.
The U.S. bank sold the shares to a group that includes Singapore's sovereign wealth fund Temasek Holdings, Hopu Investment Management and China Life Insurance, the Financial Times and Wall Street Journal said, citing people familiar with the deal.
The transaction reduces Bank of America's stake in China Construction Bank to just under 11% from 16.7%, according to the FT.
A Bank of America spokesman declined to comment, the FT said.
The move comes as banks scramble to raise capital following the U.S. government's stress tests, which found that the nation's largest financial institutions face an estimated $75 billion capital shortfall.
Bank of America, which is facing a nearly $34 billion shortfall, leads the list of companies that need more capital.