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Bank Of America Messes Up Capital Calculation, Suspends Dividend Increase

Bank Of America Messes Up Capital Calculation, Suspends Dividend Increase

April 28 (Reuters) – Bank of America Corp said it would suspend its $4 billion stock buyback program and a planned increase in its quarterly dividend because it miscalculated the level of its capital after buying Merrill Lynch in 2009.

The restatement means that the bank holds less capital than previously estimated.

Bank of America, whose shares were down 5 percent in early trading on Monday, was ordered by the Federal Reserve to suspend and resubmit its capital plans for 2014.

The Fed said the bank must address the errors in its regulatory capital calculations and ensure there were no further problems with its reporting. (http://link.reuters.com/zef88v)

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