BREAKING NEWS: Bank of America Out of TARP, Says Gasparino

CNBC’s Charlie Gasparino tells the desk that Bank of America is going to repay $45 billion and get out of the TARP program.

And they will raise capital over the next few days, he adds. That suggests to host Melissa Lee that there will be an offering - although Karen Finerman says she would be surprised if it's entirely done with common equity.

Later in the broadcast Gasparino says Bank of America will use $26.2 billion in available cash and will also sell $18.8 billion in preferred stock - with the offering coming on Monday.

The Trade

"If there is any kind of equity offering I would be a buyer of that offering," says Fast Money trader Joe Terranova. "BofA sets up nicely going into 2010. I think these developments give investors more reasons to be a fan of Bank of America."

"(In the morning) I think the move is seen as a positive by the market," adds Steve Grasso.

What else should you know?

This is Ken Lewis’ last act as CEO and I think it’s a big deal, says Gasparino. It moves BofA out of the government strangle hold. This was the thing he wanted to get done before he left.

(The move allows Bank of America to free itself from government restrictions on executive pay as well as other restrictions that come along with bailout funds.)

And it was Greg Curl's team who pulled it off. That suggests to me that Curl is now the most likely guy to become BofA's new CEO, speculates Gasparino.


And on a related note, Pete Najarian tells the desk -- I think Wells Fargo is next. They also want to get out of TARP.

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Trader disclosure: On December 2nd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SU), (GOOG) ; Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Calls; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (PLCE), (MSFT), (WMT), (PDE), (RIG), (TGT); Finerman's Firm Is Short (IJR), (IWM), (MDY), (SPY), (USO), (UNG; Grasso Owns (AAPL), (BA), (BAC), (C), (WMT), (V); Najarian Owns (AAPL) Call Spread; Najarian Owns (BRCD) & (BRCD) Calls; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (DELL) Calls; Najarian Owns (DE) Call Spread; Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) & (INTC) Calls; Najarian Owns (UAUA) Call Spread

For Steve Grasso:
Stuart Frankel Owns (NWS),
Stuart Frankel Owns (PDE)
Stuart Frankel Owns (SDS)
Stuart Frankel Owns (YHOO)
Stuart Frankel is Short (QQQQ)

Funds Managed By Todd Gordon Are Short Eur/ Dollar with wires