- The bank last March originally received Fed permission to boost its quarterly payout from $0.01 to $0.05 (along with a $4B buyback), but was forced to withdraw that plan after discovering it miscalculated capital levels.
- Bank of America (BAC) subsequently fixed the accounting issue and resubmitted a capital plan in May, and the WSJ reports the lender is requesting the same size dividend, though the buyback plan has been toned down.
- For the bank - which has made boosting the dividend a top priority - the move projects to the Fed a sign of strength and that there are no more accounting cockroaches out there. For the Fed, its decision will establish a precedent for how these errors might be dealt with in the future.
- All this is happening as pressure mounts for BofA to come to a settlement with the DOJ over mortgages, and word is Eric Holder has no interest in talking turkey with Brian Moynihan until their lieutenants get a lot closer to a final deal.
- Shares -1.6% premarket as S&P 500 futures tumble
From other sites
at AdvisorHUB (Apr 10, 2015)
at AdvisorHUB (Apr 8, 2015)
at MarketWatch.com (Apr 8, 2015)
at CNBC.com (Apr 7, 2015)
at AdvisorHUB (Apr 7, 2015)
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