Bank of America (BAC) was able to sell more than $19 billion in common equivalent securities Friday, and the stock responded favorably despite the obvious concerns about dilution. Volume was impressive; the proceeds will be used, of course, to help the bank pay back its $45 billion TARP obligation.

Forbes notes the stock sale will boost Bank of America into the top spot in the underwriting league tables. But even after the TARP payback, the bank will not have cut all ties to the government. The government still owns warrants in the bank. And even with the stock bump, these 122 million warrants were well below the strike price of $31, which seems stratospheric now. They're not going to be in the money anytime soon. It's doubtful that the bank will be able to claim, as Goldman Sachs can, that taxpayers got a good return on their investment, but it will make it easier perhaps for the board to hire an outside CEO. The pressure is really on now. 

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