$45 billion of taxpayer money burdens BofA, it plans repayment by end of 2009

The Financial Times reported on Wednesday that Bank of America Corp plans to pay back $45 billion in bail-out funds by the end of the year, accelerated by a program to raise capital. The report said that by the end of September the bank expects to raise over $35 billion in capital.

Earlier on Tuesday BofA reported that it raised $13.47 billion through a share sale in a move to meet the requirements of the regulators after the stress test. With the proceeds from the sale of part of its stake in China Construction Bank Corp for $7.3 billion BofA has now more than a half of what is needed to cover a $33.9 billion capital shortfall identified by the government.

Bank of America is currently in talks to sell some of its non-core assets. The company believes it cab raise $6 billion to $7 billion of after-tax capital from the sale of assets such as private bank First Republic, administration group Financial Data Services and insurer Balboa, the report said. Besides, the bank can also convert $9 billion in preferred shares and as much as $2 billion-plus in deferred tax gains.