Tuesday, September 3, 2013

Bank of America selling its stake in China Construction Bank

Bank of America plans to sell its remaining stake in the China Construction Bank on Tuesday for about $1.5 billion, the Wall Street Journal reports. The move would end an eight-year investment the Charlotte bank no longer wanted as it has continued to cut costs and shed assets.

The bank took a 10 percent stake in the giant Chinese lender in 2005. CEO Brian Moynihan sold off the majority of it two years ago as the streamlining initiative known as Project New BAC got underway. That project also included selling stakes in foreign assets like credit card portfolios in Spain and an investment in Santander.

What's left to sell today is about 1 percent -- at a discount to the Chinese bank's closing price from Tuesday, the Journal reports.