Non-government holders of Bank of America preferred shares have agreed to an exchange offer that will result in nearly $6 billion more capital for the bank, reports the Financial Times. The preferred shares will be converted into 436 million shares of common. So it looks like the bank will be able to avoid a mass conversion of government-owned preferred shares into common--a victory of sorts.

So far, the bank has raised $26 billion out of the $33.9 billion that the government has required after its "stress test." Asset sales will likely push Bank of America over the threshold. It has said it intends to sell several of its First Republic Bank and Columbia Management Group units.

For more:
- here's the FT article

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