Bank of America suspended a plan to buy back $4 billion of stock and boost its dividend after discovering an error in the way it calculated its capital levels…The second-largest U.S. bank by assets said it discovered the error and brought it to the attention of the Federal Reserve, which then required it to resubmit its capital plan. It has 30 days to do so. The Fed on March 26 approved Bank of America’s proposal to increase its annual dividend to five cents a common share from a penny and expand its share buybacks. The Charlotte, N.C., lender said it now plans to request less than the previously approved plan…The misvalued structured notes were debt securities issued by Merrill Lynch. When the value of the underlying companies changed, the bank failed to readjust the value of the bonds as well. [WSJ]

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Comments (27)

  1. Posted by guest | April 28, 2014 at 1:43 PM

    mouseover ftw

  2. Posted by guest | April 28, 2014 at 1:44 PM

    great work fellas

  3. Posted by King Houston | April 28, 2014 at 1:47 PM

    .Aint nuthin sweeter than a little Texas 'rithmetic

  4. Posted by guesticles | April 28, 2014 at 1:55 PM

    isn't checking their math what they're paid to do in the first place?

  5. Posted by guest | April 28, 2014 at 1:55 PM

    who in this scenario is from texas?
    -serious question guy

  6. Posted by investorcluzo | April 28, 2014 at 1:58 PM

    Not only are the bankers using fuzzy math, but the guys checking their work had no clue it was screwed up…other than that, I have no concerns.
    -Confidence Quant

  7. Posted by Faux | April 28, 2014 at 2:17 PM

    In 6 months, Maria Bartiromo will blow this story wide open.

  8. Posted by Clortho | April 28, 2014 at 2:22 PM

    Why when you could just do it themselves?

  9. Posted by ME | April 28, 2014 at 2:23 PM

    I hope this story = Me.

  10. Posted by Captain Oblivious | April 28, 2014 at 2:34 PM

    How do you even take this place seriously anymore. No one will get fired over it either.

  11. Posted by Guest | April 28, 2014 at 2:55 PM

    I don't think you know what "fuzzy math" means. If a 7 year old told you 2+2=3 would you call it fuzzy, or call it wrong?

  12. Posted by K. Lewis | April 28, 2014 at 2:56 PM

    Sounds like someone found the Boone's Farm cellar. She's a cruel mistress.

  13. Posted by Kneale | April 28, 2014 at 3:02 PM

    I need a fluffer!

  14. Posted by Mitch | April 28, 2014 at 3:02 PM

    In 6 months Mario Batali will blow me

  15. Posted by Lassie XXI | April 28, 2014 at 3:14 PM

    No way – I'm not falling for that again, mister!

  16. Posted by Guest | April 28, 2014 at 3:19 PM

    Oldest trick in the book and the Fed fell for it?

  17. Posted by Half Full | April 28, 2014 at 3:20 PM

    The good news is that bonus payments are based on the price error.

  18. Posted by Captain Oblivious | April 28, 2014 at 3:34 PM

    The red sweaty skin says I've been drinking my feelings. The look of terror says I may have sharted…..

  19. Posted by Fhagette | April 28, 2014 at 3:37 PM

    It's called Obamacare

  20. Posted by Arnold Babar | April 28, 2014 at 3:46 PM

    And in 6 year, Michael Lewis will write a book on it, calling corporate accounting rigged.

  21. Posted by Guest | April 28, 2014 at 3:50 PM

    BENGHAZI!

  22. Posted by guest | April 28, 2014 at 3:56 PM

    what?

  23. Posted by DingALing | April 28, 2014 at 4:05 PM

    The Investment Firm that failed before being purchased by BoA isn't good at math. Shocking. Next you'll tell me some old rich white guy who owns a sports team played prodominately by african-americans is racist…

  24. Posted by Guest | April 28, 2014 at 5:56 PM

    Quite right. The "error" saved BAML millions of dollars in stock comp, and the equity value that vanished today technically never existed in the first place. They should make mistakes like this more often.

  25. Posted by Spirit Pointer | April 28, 2014 at 9:37 PM

    Pay me what Montag makes or I fucking quit.

    -BofA VP of Investor Relations after getting the news Sunday night.

  26. Posted by FatGuySkinnyTie | April 29, 2014 at 4:21 AM

    The small Indian guy currently living in the space under my gut but above my FUPA could have done this better.

  27. Posted by American Debts | May 2, 2014 at 11:19 AM

    Wait, checking their math? As in, a second time? How about checking 100 times. This is all you guys do, what else is going on?