Bank of America doubles its stake in China Construction Bank Corp

Bank of America Corp (NYSE:BAC) is doubling its stake in China Construction Bank Corp (SHA:601939) investing another $7 billion into the bank, this comes as the Bank of America receives government bailout funds and makes job cuts.

Bank of America who is the largest bank by market value will own 19.13 percent stake in china Construction Bank Corp which is China’s second largest lender, previously it had a 10.8 percent stake.

Kenneth Lewis CEO of Bank of America raised his bet on the Chinese bank as it lost within just six months 45 percent of stock value, he is now doing the deal for 32 percent less than the closing price yesterday, this deal came just three weeks after the American bank received $15 billion from the Federal Government.

Source: Bloomberg