Bank of America Corp. has the financial wherewithal to repay the $45 billion it received in taxpayer aid and still be considered well capitalized. But does it have the political wherewithal?

Ongoing disagreement with government regulators, coupled with concerns about loan losses and anticipated new banking rules, are contributing to a delay in BofA’s returning the money. And with no end in sight for those challenges, some observers believe the bank will remain under the government’s thumb for the long term.

“It’s like Hotel California,” University of North Carolina at Charlotte finance professor Tony Plath says of BofA’s situation. “They can check out anytime they want, but they can never leave.”

A year ago, with the economy on the verge of collapse, BofA accepted $15 billion from the government’s then-new Troubled Asset Relief Program. Eventually, the amount of taxpayer aid tripled to $45 billion as BofA agreed to buy Merrill Lynch & Co., tried to back out, then said it would close the deal if more government money were provided.

Initially, TARP—intended to improve banks’ capital and bolster lending—helped BofA survive a near collapse of the market and swallow its risky deal with Merrill. But since then, the government aid has opened the bank to stricter regulations that have led to an overhaul of its board, pay cuts handed down from the government’s “pay czar,” and the upcoming retirement of chief executive Ken Lewis.

BofA is fully capable of repaying the entire $45 billion and still far exceed capital requirements under traditional banking standards, according to analysis of the bank’s balance sheet by SNL Financial. If BofA were to pay Uncle Sam $45 billion today, it would still boast a total capital ratio of 13.79 percent, a Tier 1 ratio of 9.56 percent, and a leverage ratio of 6.43 percent, according to SNL’s analysis for the Charlotte Business Journal.

Traditionally, the banking industry is required to have capital ratios of 10 percent, 6 percent, and 5 percent, respectively, to be considered well capitalized.

Those complex ratios of cash, equities, and other assets are used to determine if a bank has enough capital to support its lending activity and other operations.

Through the third quarter, BofA’s ratios were 16.69 percent, 12.46 percent, and 8.39 percent, respectively.

For months, observers and analysts have asked BofA officials when the bank will repay the $45 billion that has become a thorn in its side. Sooner rather than later, bank officials have typically said.

But this week, bank spokesman Jerry Dubrowski told the Charlotte Business Journal the bank is “ready and able” to begin repaying the money. However, he says BofA is waiting for federal regulators to approve a repayment plan. And regulators appear to be at odds with bank officials, suggesting BofA needs to raise more capital before repaying any money, according to a Wall Street Journal report citing people familiar with the matter.

U.S. Treasury spokeswoman Meg Reilly said that it’s against department policy to discuss TARP negotiations with individual banks. She declined to comment further.

Concern Over New Rules

Regulators have indicated in recent months that large, national banks should be required to maintain higher capital ratios than in the past, including a Tier 1 ratio of 10 percent instead of 6 percent.