Bank of America resubmits capital plan to Fed
NEW YORK (AP) — Bank of America has resubmitted its capital plan to the Federal Reserve, a month after it discovered errors in its initial report and was forced to suspend a bigger dividend payout and a stock buyback.
Shares in the bank slumped 4 percent on April 28 when it said that it had made an error in how it how it valued securities obtained in its acquisition of Merrill Lynch during the financial crisis in 2009.
Bank of America had already received permission from the Fed to raise its quarterly dividend from the current 1 cent, to 5 cents per share, and to buy back $4 billion of its own shares. Those plans were put on hold when it determined that it has overestimated its capital ratios.
The bank said Tuesday that changes will lead to less than a one-basis point reduction in reported capital ratios for the period ended Sept. 30, 2013, and will have no effect for the period ended March 31 of this year.
The Fed has up to 75 days to study the bank's so-called "Comprehensive Capital Analysis and Review."
"There can be no assurance as to the timing or outcome of the Federal Reserve's review of the resubmitted 2014 CCAR items, including the requested capital actions contained therein," the bank said in a filing Tuesday with the Securities and Exchange Commission.
Shares in the Charlotte, North Carolina, bank rose almost 2 percent, to $15, before the opening bell.