- 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.
- Shares -2.4% premarket
- Source: Press Release