No Result
View All Result
  • Login
Friday, July 1, 2022
Afternoon Voice
SUBSCRIBE
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
Afternoon Voice
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Epaper
  • More

Home > Uncategorized > Bank of America suspends buyback, dividend increase after capital error

Bank of America suspends buyback, dividend increase after capital error

afternoonvoice@gmail.com' by Afternoon Voice
April 29, 2014
in Uncategorized
A A
0

Bank-AmericaBank of America Corp said on Monday that regulators had suspended its plan to buy back more shares and raise its dividend after the bank realized it had miscalculated a measure of the capital on its books.

The second-largest U.S. bank said fixing the mistake reduced a capital level by $4 billion, or about three-quarters of the extra money that the Federal Reserve had approved its returning to shareholders over the next year.

News of the gaffe sent the bank’s shares down 6.3 per cent on Monday to close at $14.95, in the biggest one-day decline in the stock since November 2012.

The announcement illustrates how difficult it is to determine appropriate capital levels for the biggest banks, particularly under hypothetical stress situations that regulators consider. Bank of America now has to submit its request to return more capital to shareholders for a third time, and the Fed itself previously erred in projecting the bank’s minimum capital ratios under a stressed scenario.

The previously approved increase in the bank’s dividend would have been the first since the financial crisis, and raising it has been a focus of top executives. Banks historically paid out relatively high dividends, spurring retirees and other investors seeing income to buy their shares.

Banks failed to cut their dividends even as their earnings shrank during the financial crisis, burning up valuable capital and leaving them more vulnerable as the housing market deteriorated. In response, lawmakers have given regulators much more control over banks’ plans to return funds to shareholders.

The Fed said Bank of America has 30 days to submit a new plan that corrects the errors and ensures no further reporting problems if it would like to return more money to shareholders over the next four quarters.

The bank said its new plan will likely be more modest than its prior request. In March, the bank received approval to buy back $4 billion of shares and increase its dividend payout by more than $1.5 billion a year, or 5 cents per share per quarter from 1 cent.

Analysts said the bank would likely increase its dividend as previously planned, while not asking to buy back any shares.

The accounting error stemmed from Merrill Lynch & Co debt, which Bank of America assumed after it bought the investment bank and brokerage during the financial crisis.

afternoonvoice@gmail.com'

Afternoon Voice

Recommended For You

michael martin, irish pm, irish prime minister, martin
Uncategorized

Irish PM Martin urges Britain to resume talks with EU over its N.Ireland law

June 19, 2022
RESERVE-WILDLIFE-NATURE-RHINOCEROS
Nation

ESZ of one km from the demarcated boundary is must for National Parks and Wildlife Sanctuaries, directs Supreme Court

June 3, 2022
p chidambaram, chidambaram, congress, Jawaharlal Nehru, Narendra Modi
Uncategorized

Attempt to distort history, Nehru intervened in Goa at right time: Chidambaram on PM’s criticism

February 11, 2022
ks sethumadhavan, director, south indian, filmmaker, sethumadhavan
Uncategorized

Legendary South Indian director K S Sethumadhavan passes away

February 9, 2022
japanese, japan pm, shinzo abe, shinzo
Uncategorized

Ex-Japan PM says a Chinese military “adventure” could be “suicidal”

February 9, 2022
tayyip erdogan, erdogan, Alevi, Alevi community, AK Party
Uncategorized

Tayyip Erdogan faces uphill bid to woo Turkey’s large Alevi minority

February 9, 2022
ADVERTISEMENT

LATEST

‘Maha’ twist: Eknath Shinde takes oath as CM, Devendra Fadnavis his deputy

‘Maha’ twist: Eknath Shinde takes oath as CM, Devendra Fadnavis his deputy

June 30, 2022
Israel’s parliament, Elections, Benjamin Netanyahu,

5th election in 4 years Israel’s parliament dissolves

June 30, 2022

Devendra Fadnavis Punha Yenar

June 30, 2022
Z level Security, Eknath Shinde, Goa, Mumbai, Governor of Maharashtra.

Eknath Shinde gets Z level security

June 30, 2022
Udaipur Murder Case, Crime Scene do not cross, Police line,

MHA orders the NIA to investigate the “brutal” murder of a tailor in Udaipur and any international connections

June 30, 2022
ADVERTISEMENT
Afternoon Voice

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Important Links

  • Disclaimer
  • Privacy Policy
  • About Us
  • Contact Us
  • Support Parallel Media

Follow Us

No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?