The Bank of Texas, the biggest bank in the U.S., is getting $2.7 billion to refinance its $4.7 trillion portfolio
The biggest U. S. bank is getting a $2 billion infusion of cash to refile its $5.4 trillion portfolio.
That will help the bank reduce the size of its balance sheet, according to the bank’s financial statements, which are posted online.
The Bank is one of the biggest U,S.
The $2-billion investment will allow the bank to reframe its balance sheets and lower its risk profile, said Jamie Dimon, chief executive officer of the bank.
The new money is the largest single cash infusion to be offered by any U.s. bank, including those in the S&P 500.
“It’s going to make a real difference to us,” Dimon said during a news conference Wednesday.
The investment will be made by Bank of America Corp., the country’s second-largest bank, and its affiliates, including its investment bank, BB& Goudsmit &B, and investment bank unit, BBVA.
The bank also will receive an additional $400 million from Citigroup Inc., which is an investor in the bank, the Financial Times reported.
Dimon did not provide details about the new money.
The banks biggest holdings are the $5 billion that is tied up in mortgage bonds and the $3.4 billion that the bank owns in its corporate bonds.
Those securities are worth about $4 trillion and were a key factor in the financial crisis that began in 2008.
The Federal Reserve has already raised interest rates twice, in December and February, and in November.
Dimons remarks come after he and his bank announced a $10 billion investment last year to buy back its own securities and expand its lending.
The deal also gives the bank more leverage to borrow, and help it diversify its portfolio.
The federal government also has approved the $2 million in loans to Bank of Canada to refocus on lending to other sectors.
The U. s Treasury Department also approved the Bank of Toronto to refranchise.
The government will give the bank up to $400 billion to fund its $6.2 trillion asset portfolio.
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