Fed gives BofA capital plan the green light
Adjusts previously submitted regulatory capital ratios
The Federal Reserve accepted Bank of America’s (BAC) resubmitted capital plan after it incorrectly reported data used in the calculation of regulatory capital ratios.
At the end of April, Bank of America noted that it was downwardly revising its previously disclosed regulatory capital amounts and ratios due to an incorrect adjustment related to the treatment of certain structured notes assumed in the Merrill Lynch acquisition in 2009.
At the time, the Federal Reserve said, "Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors."
As a result, Bank of America suspended its previously announced 2014 capital actions, including the $4 billion common stock repurchase authorization and the planned increase in the quarterly common stock dividend from 1 cent per common share to 5 cents per share.