**Bank of America says it plans to repay its $45bn (£27bn) US government bailout and raise capital in the next few days.**It received the loans during the credit crisis last year and after the purchase of Merrill Lynch this year.
The move would allow Bank of America to free itself from government restrictions on executive pay that were a stipulation of granting the funds.
Bank of America said it would use $26.2bn in available cash and also sell $18.8bn in securities to pay the debt.
Loss making
Bank of America reported a $1bn net loss for the three months from July to September, which was worse than had been expected.
The figure compares with a net profit of $3.2bn in the previous quarter and $1.2bn in the same period of last year.
Bank of America’s chief executive Kenneth Lewis, who is due to retire at the end of the year, will receive no salary or bonus for 2009.
The decision was made by the US Treasury Department’s Kenneth Feinberg, who looks at pay at bailed-out firms.