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Bank of America Will Be Sure To Check Its Math Moving Forward

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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27 Responses to “Bank of America Will Be Sure To Check Its Math Moving Forward”

  1. guest says:

    mouseover ftw

  2. guest says:

    great work fellas

  3. King Houston says:

    .Aint nuthin sweeter than a little Texas 'rithmetic

  4. guesticles says:

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

  5. investorcluzo says:

    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

  6. Faux says:

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

  7. Captain Oblivious says:

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

  8. K. Lewis says:

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

  9. Kneale says:

    I need a fluffer!

  10. Guest says:

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

  11. Half Full says:

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

    • Guest says:

      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.

  12. Captain Oblivious says:

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

  13. DingALing says:

    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…

  14. Spirit Pointer says:

    Pay me what Montag makes or I fucking quit.

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

  15. FatGuySkinnyTie says:

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

  16. 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?

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