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BAC Finds Capital Calculation Error, Halts Dividend Increase, Buyback.

scott
edited April 2014 in Off-Topic
http://money.cnn.com/2014/04/28/investing/bank-of-america-stress-test/

BAC -almost 5%

"The Fed is requiring the BofA to resubmit its data and comes up with a new capital plan. BofA said it has engaged an unspecified third party to "review processes and the materials prior to resubmission."
As BofA tries to come up with a revised game plan, the Fed ordered the bank to suspend its plans to buy back $4 billion of common stock and boost its dividend from 1 cent a share to 5 cents.
BofA said it will "expeditiously" resubmit its numbers to the Fed, but warned it anticipates the new dividend and buyback plans to be less than previously announced. The bank has a month to get its revision to the Fed."

Comments

  • CharlesCharles
    edited April 2014
    Horrible.

    At best embarrassing.

    At worst, I don't want to think about it!

    Suspect that in any case, there is more to this story than has been released yet.

    So, I've sold off couple other holdings to position to buy more BAC, JIC.

    (The holdings I sold were JBSS and SENEA, neither of which seemed to be able to hold any advance. Come to think of it, I've never had much luck with small caps, individual equities or funds.)

    Certainly hope my belief in Monyihan is not misplaced. Fingers-crossed.
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