Wells: Reputational damage biggest hit to BofA

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

"We anticipate Bank of America (BAC -4.6%) will underperform its peers today," is the high-priced conclusion of the team at Wells Fargo after BofA is forced to suspend its capital return plans in the wake of an accounting miscalculation.

The actual net effect on the bank's capital will not be too material, says Wells, but reputational damage, upward pressure on expenses, and the idea of a more conservative capital return request next year could weigh on the stock over the next few months (for an example, see BB&T after the 2013 CCAR).

Wells currently has a Market Perform rating on the stock.

Previously: Black eye: BofA suspends buyback, dividend hike