BofA to repay bailout funds worth $45 bn

Bank of America has said it will repay $45 billion bailout funds to the US government.

The battered entity had received taxpayers money to the tune of $25 billion in October 2008 and another $20 billion during the time of Bank of America's (BofA's) takeover by Merrill Lynch earlier this year.

The repayment of the bailout funds would help the banking entity to free itself from the government restrictions on executive compensation. BofA is also on the look out for a new Chief Executive Officer.

In a statement issued on Wednesday, BofA said it is planning to repay the $45 billion in Troubled Asset Relief Programme (TARP) funds through $26.2 billion in cash and $18.8 billion from the sale of "common equivalent securities".

"The repayment will be made after the completion of a securities offering," the North Carolina-based firm said.

Further, BofA would convene a special meeting of its shareholders to seek approval for increasing the company's authorised outstanding shares.

"We appreciate the critical role that the US government played last fall in helping to stabilise financial markets, and we are pleased to be able to fully repay the investment, with interest," BofA President and CEO Kenneth D Lewis said.

Lewis has already announced his plans to step down as CEO of the company.