Federal Reserve green lights resubmitted BofA capital plan


Bank of America (NYSE:BAC) was forced to resubmit its capital plan after finding an error in its capital calculations. The accepted plan calls for a boost in the dividend to $0.05 per share from $0.01, but the bank has dropped the proposal for $4B in share buybacks.

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Comments (29)
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Watching this stock rise on this news is going to be "fun".

     

    lol.
    6 Aug 2014, 09:24 AM Reply Like
  • Dirty Capitalist
    , contributor
    Comments (184) | Send Message
     
    Love it !!! Thanks for making me smile this morning while I sip my coffee.
    6 Aug 2014, 09:45 AM Reply Like
  • 6012571
    , contributor
    Comments (463) | Send Message
     
    Oh what Funfun it is to own BAC STOCK
    6 Aug 2014, 09:26 AM Reply Like
  • papayamon
    , contributor
    Comments (1352) | Send Message
     
    Don Dion needs to get to work putting a negative spin on this one! it's going to be a lot of funfun watching his alter egos try to explain this away. surely, there had to be fraud involved!
    6 Aug 2014, 09:37 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4662) | Send Message
     
    Folks, comically, Bank of America cheerleaders are doing cartwheels and flashing their pompoms this morning.

     

    What's up? Seems the Board of Directors of the Bank has raised the quarterly dividend to one buffalo nickel from a copper penny. That makes for a 1.30% dividend rate. Rah-rah? Hardly. Look at the current dividend yields for superior-managed rivals, whose shares have soared in the past four years:

     

    Wells Fargo (NYSE:WFC) 2.60%

     

    U. S. Bancorp (NYSE:http://bit.ly/wigfRq) 2.20%

     

    It's telling that the bar is set so low for Bank fans, many of whom have personal or vocational ties to this long sub-performing financial conglomerate.

     

    …funfun..
    6 Aug 2014, 09:52 AM Reply Like
  • Ethics-
    , contributor
    Comments (157) | Send Message
     
    Isn't that when you buy though? When it's been bad for a while, and then seems to be heading towards the light.

     

    I suspect you'd only buy when its priced in.
    6 Aug 2014, 10:04 AM Reply Like
  • herrmajj
    , contributor
    Comments (45) | Send Message
     
    Let me get this straight. The stock I started accumulating in the $5 range in 2011 is now trading at $15 plus the dividend and I as an investor have been wasting my time. Thanks for the education.
    6 Aug 2014, 10:52 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (694) | Send Message
     
    That is a 400% increase Loser Loser. Way more than you are getting!
    6 Aug 2014, 11:17 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4662) | Send Message
     
    Why, folks, stockholders owning 500 shares of BAC will be able to cash their next quarterly dividend and go out to dinner at Olive Garden and get a big salad and glass of cheap wine! Whoooooopppppeee.

     

    Bottom-line, it sure doesn't take much to make BAC bulls happy and fully satisfied. And Bank Management & Directors are depending on their exceptionally low level of expectations.

     

    …funfun..
    6 Aug 2014, 11:23 AM Reply Like
  • herrmajj
    , contributor
    Comments (45) | Send Message
     
    Or I can use the capital appreciation to buy a car.
    6 Aug 2014, 11:31 AM Reply Like
  • Noquiche
    , contributor
    Comments (247) | Send Message
     
    No, we do not want to buy your overpriced stocks from you....but thanks anyway. I will wait until I can sell you this stock for 30.
    6 Aug 2014, 11:47 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2863) | Send Message
     
    Would have rather seen them keep the buyback and put the dividend on hold, but it's better than a rejection of both.
    6 Aug 2014, 09:55 AM Reply Like
  • stockade
    , contributor
    Comments (18) | Send Message
     
    I hope the stock gets back to 55 dollars a share were I bought it. Have to hold.
    6 Aug 2014, 09:59 AM Reply Like
  • Ethics-
    , contributor
    Comments (157) | Send Message
     
    Never fall in love with a stock...
    6 Aug 2014, 10:05 AM Reply Like
  • alance86
    , contributor
    Comments (237) | Send Message
     
    funfun, again you are missing the point. Yes their dividend is lower than other banks. But that gives them more room to grow the dividend, which gives investors like us a higher yield on cost than we could ever get with WFC or US Bancorp, or any other bank out there. Try to take off your blinders and see the investment vehicle for what it really is, a tool to make money, nothing more, nothing less.
    6 Aug 2014, 10:00 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4662) | Send Message
     
    We clearly see BAC on the basis of abundant documented data has been an "investment vehicle", "a tool" for losing money for many, many years, "nothing more, nothing less".

     

    Imitating Lee Iacocco, "if you can find a better bank, buy it."

     

    …funfun..
    6 Aug 2014, 10:06 AM Reply Like
  • alance86
    , contributor
    Comments (237) | Send Message
     
    funfun,

     

    You are looking in reverse, perhaps you have different investment goals than myself. I am looking to the future, I am very young and have a long time horizon in front of me. If you are looking to preserve capital, or only judge a company on their history, then sure, not the best investment. If you are looking forward, then it has great potential. You like to promote that it has been dead money for the past 3 years since BM took over. In my opinion, if they can be "dead money" while still paying out 60-75 billion in fines, imagine what they can do when they are done paying the fines, or the amount of fines is lower.
    6 Aug 2014, 10:15 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4662) | Send Message
     
    alance86,

     

    Two points:

     

    If you are very young, you are to be congratulated on prudently saving and making investments in equities at an early stage of life, early stage of your career.

     

    Second, in the banking sector, you may be better off investing in the shares of the faster growing financial institutions, banks, insurance and reinsurance companies, and wealth management firms. Bank of America is not growing, it is shrinking.

     

    Finally, there is no assurance, there will be no further huge fines, settlements, and litigation expenses, as a wave of private litigation will continue. Moreover, what other multi-$billion "accounting errors" will jump out and surprise? What is the true value of hundreds of $billions of arcane derivatives and murky assets held by the Bank and its subsidiaries and affiliates?

     

    Carry on…funfun..
    6 Aug 2014, 10:24 AM Reply Like
  • alance86
    , contributor
    Comments (237) | Send Message
     
    You are correct, there are no assurances of the fines being done, and I am sure there are some better financial plays out there, and do not doubt that for a second. I think BoA has potential to do better moving forward, and so far have been rewarded in that viewpoint, and think that this is another step in that direction.
    6 Aug 2014, 10:32 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (694) | Send Message
     
    BAC stock price has more than tripled since 2008. It was a 54 dollar stock before the crises. As the banks continue to recover over the next 5 to 7 years even if BAC only recovers half of the 2008 highs how can you not buy it?
    6 Aug 2014, 11:53 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4662) | Send Message
     
    Fellow Investors, we have observed that frantic BAC fans and PR operatives have been putting out false information and data over the internet, inadvertently or deliberately misleading to investors! In doing so they ape the corrupt culture of the Bank Management, whom they are assiduously dedicated to protecting from scrutiny and any criticism.

     

    For example one avid BAC fan insists , "BAC stock price has more than tripled since 2008." BAC traded in a range of a high of 45.08 and a low of 14.08 during the year 2008. There was no "tripling" from the price of BAC set in 2008. As a matter of fact the stock has gone rigorously nowhere under the bumbling bosses of this broken-down Bank. The Bank, we might add, still suffers from the cancer of corruption which has metastasised every nook and cranny of this conglomerate for years in the 21st century. Price of treatment of this financially debilitating disease: $60 billion and counting in fines, settlements and litigation charges, and $150 billion in market cap.

     

    …funfun..
    6 Aug 2014, 12:13 PM Reply Like
  • alance86
    , contributor
    Comments (237) | Send Message
     
    Allow me to correct him, since he was a month or two off on his time frame (heaven forbid). BAC hit $3.14 on 3/9/2009, and has since quintupled (approx). Please explain how going from that low of $3.14 to current prices is going "rigorously nowhere".
    6 Aug 2014, 12:23 PM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    alan, you are spot on. fun fun only has eyes in the back of his head.
    6 Aug 2014, 01:22 PM Reply Like
  • Mad Stacks
    , contributor
    Comments (758) | Send Message
     
    A 400% dividend increase? I'll take it. Now settle with the DOJ and it's off to the races.
    6 Aug 2014, 10:20 AM Reply Like
  • Rasmus Lykke
    , contributor
    Comments (28) | Send Message
     
    Now we have a lot of happy stockholder and an oracle from Omaha.
    6 Aug 2014, 10:21 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
     
    Err.... Someone mention me?????
    6 Aug 2014, 11:44 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13494) | Send Message
     
    This is sad. TBTF banks will all end up begging the Federal Reserve and taxpayers for bailouts again. If it weren't for the giveaway zirp rates (which make it virtualy impossible for even a idiot not to make money) and the governments backing of TBTF banks making them appear safe because taxpayers are on the line if they become insolvent they'd probably be begging for taxpayer money and bankruptcy protection from their fraud lawsuits.

     

    The only way TBTF banks should be able to distribute its assets is by no longer being a TBTF bank and ditching using the public as their parachute. Sure you may make money by owning them and watching corrupt people allow them to screw the public without knowing, but you become the problem not the solution. Any business dependent on the government to survive isn't a viable business no matter what they say. Ergo managements interest to distribute assets out of the company to themselves as shareholders to protect such assets from covering future bankruptcy and loss. In the end taxpayers will pay for such losses.

     

    Once again, there is zero downside for bad decisions and personal upside for bad decisions at TBTF banks making them behave just like socialist state owned banks save for the fact there seems to be a lot more corruption than any other State owned bank in the world.
    6 Aug 2014, 12:39 PM Reply Like
  • Scoreboard
    , contributor
    Comments (165) | Send Message
     
    Bought several thousand shares at about $6. Even as a comparative study this investment has done very well for me. The public will soon find another "scapegoat" to hammer for awhile. Time will tell if the economic "fundamentals" of this institution will pay off for us investors. Today is a good day for BAC investors. Good luck investors.
    6 Aug 2014, 02:27 PM Reply Like
  • Scoreboard
    , contributor
    Comments (165) | Send Message
     
    Moon Kil Woong...I'm not sure that I would agree with your overall assessment of large banks. But, I DO agree that they should NOT be bailed out. Bad decisions, bad economic policy and poor business judgment should not be bailed out by the government. I believe the "free-market" can, and will, correct itself. If the banks had not been bailed out - I believe they would still be around... but with most of the toxic assets disposed of and the bank trimmed down to a more sound economic entity. With that being said... we have nothing close to a "free-market" situation in the U.S. of A. Our government seems every bit as greedy as any financial institution in the nation. Take a look where, and how, the members of congress invest their money. AND YOUR MONEY. They hammer the bank day after day... then allow them to be bailed out and THEN give them several incentives that allow them to make billions of dollars. Then they sue the same bank they bailed out and currently give economic incentives to. Follow the money! Sounds like another TAX to me. And who pays for that. All of us taxpayers. All this rhetoric aside... I try to invest in those institutions that make me money. I wonder how many individuals in congress own bank stocks or particular stocks such as BAC. Might be worth a look.
    6 Aug 2014, 02:39 PM Reply Like
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