Share sale helps Bank of America

Bank of America billboard in Times Square

Bank of America requires the most additional funds

Bank of America has raised $13.5bn (£8.7bn) through selling new shares as it looks to strengthen its financial position during the economic downturn.

The bank was told by the US government earlier this month that it needed to raise $33.9bn - more than any other US bank - in order to weather the crisis.

It has issued 1.25 billion shares at an average price of $10.77, slightly below the open market share price on Tuesday.

Other US banks are in the process of raising cash by issuing new shares.

'Slow recovery'

Separately, Bank of America chief Ken Lewis told a conference in London that he expects more consolidation among US banks as the economy stabilises.

However, he said his own bank would not be party to any more takeovers following the acquisition of Merrill Lynch in January.

"We have enough on our hands right now," he said.

Mr Lewis also expressed a belief that the US economy was beginning to pick up.

"We are on the cusp of what will turn out to be a slow but sustainable economic recovery. There will continue to be a lot of pain... but I think the worst is most likely behind us," he said.

Earlier this month, the US Treasury undertook a series of so-called "stress tests" on 19 of the country's biggest banks to see if they had sufficient capital to cope should the recession deepen.

It concluded that 10 banks needed to raise $74.6bn in new funds.

The banks were given until 8 June to finalise their plans to do so, and get them approved by regulators.