U.S. Treasury praises Bank of America payback

WASHINGTON Dec 2 (Reuters) - The U.S. Treasury Department said on Wednesday that Bank of America Corp.'s (BAC.N) decision to repay $45 billion of bailout funds will boost confidence in the health of the financial system.

"We are pleased that Bank of America is moving ahead with plans to pay the taxpayers back in full," a U.S. Treasury official said. "As banks replace Treasury investments with private capital, confidence in the financial system increases...(and) government's unprecedented involvement in the private sector lessens." (Reporting by Glenn Somerville; Editing by Leslie Adler) ((glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net))