Black eye: BofA suspends buyback, dividend hike

|About: Bank of America Corporation (BAC)|By:, SA News Editor

At issue is a downward revision to the bank's capital ratios due to an incorrect treatment of certain structured notes assumed in 2009's Merrill Lynch acquisition.

The new estimated tier 1 capital ratio of 11.9% is 21 basis points lower than previously thought.

Bank of America (BAC) has notified the Fed, and has suspended its capital plan which included a $4B buyback this year as well as a boost in the dividend to a nickel per share from a penny. After third-party review, the bank expects to resubmit its capital plan to the Fed ASAP.

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