Banking, finance, and taxes
BofA Resubmits Capital Plan, Almost No Financial Impact From Errors
Published:
Bank of America Corp. (NYSE: BAC) has decided to resubmit its requested capital actions and certain 2014 Comprehensive Capital Analysis and Review (CCAR) schedules to the Board of Governors of the Federal Reserve System. Monday’s action was disclosed in an SEC Filing and follows the bank’s prior announcement on April 28, 2014, that it would resubmit its 2014 CCAR items.
As a reminder, this is on the heels of discovery of an adjustment to regulatory capital. This is also what will likely determine what Bank of America can accomplish in raising the dividend and buybacks.
The bank said that a third party was engaged to perform procedures related to its 2014 Comprehensive Capital Analysis and Review resubmission processes. The party was also hired over the bank’s controls regarding reporting and calculation of regulatory capital ratios, and focused on the periods ended September 30, 2013, and March 31, 2014.
Bank of America signaled in the filing that this third-party review has been completed and resulted in additional adjustments that had less than one basis point reduction on the bank’s reported regulatory capital ratios for the period ended September 30, 2013. This adjustment also had no effect on the same financial ratios for the period ended March 31, 2014.
Bank of America’s filing said:
As the Corporation announced on April 28, 2014, the requested capital actions contained in the resubmission are less than the 2014 capital actions to which the Federal Reserve previously did not object. Pursuant to CCAR capital plan rules, the Federal Reserve has up to 75 days to review the Corporation’s resubmitted 2014 CCAR items, including the requested capital actions.
After this is finalized at the Federal Reserve, we will find out if the bank can use more funds for dividends and buybacks for its common stock holders.
Bank of America shares were up 1% at $14.88 in early indications, on the news that the review results were de minimus.
ALSO READ: Thirteen Analyst Stocks Under $10 With Big Upside Calls
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
