Bank of America announced it made a $402 million payment to the federal government to pay back the U.S. government's investment as part of the $45 billion in bailout funds it received last year and early this year.
The payment is the dividend on the Fixed-rate Cumulative Perpetual Preferred Stock the government received.
About $223 million is linked to the Troubled Asset Relief Program's Capital Purchase Program. About $50 million is related to the government's assistance in purchasing Merrill Lynch & Co. inc. The remaining $129 million is from a $20 billion investment on January 16 to facilitate the acquisition of Merrilly Lynch.
Bank of America expects to pay back $2.8 billion in 2009.