Bank of America's botched dividend boost was a "disgrace" and raised questions over whether the bank has become "too big to run," CNBC's Jim Cramer said Monday, moments after news broke that the massive bank halted a planned 4 cent dividend increase.
"To announce a dividend increase and then take it back? That's sacrosanct," Cramer said on " Squawk on the Street ." "The reason why companies don't like to increase dividends is because they're afraid one day they'll have to cut them."
Bank of America suspended its $4 billion share buyback program and dividend increase because of a miscalculation related to its 2009 acquisition of Merrill Lynch, the bank announced Monday. The Federal Reserve said the bank will have to resubmit a capital plan for the central bank's annual stress tests after correcting the mistake.
The news sent Bank of America shares down more than 4 percent Monday morning. (Check here for current share prices)
Cramer's charitable trust owns shares of Bank of America. Monday's headlines, however, have him shaking his head at the trust's portfolio. Cramer added that the mistake proves that financial institutions have become too hard to understand.
"This is a disgrace," Cramer said. "Is the bank too big to run? Do they have any idea what's going on? ... I'm looking at it and I'm saying, 'How could I be so stupid?' They're just hard to understand, these banks. It's too hard."
-By CNBC's Jeff Morganteen. Reuters contributed to this report.