Bank of America’s gaffe on U.S. stress tests has meant “tough consequences” for investors, Chief Executive Officer Brian Moynihan said Wednesday as his staff and directors regrouped to figure out what went wrong.
Bloomberg News reports that the board has started multiple reviews of how the mistake occurred and who’s responsible while a new submission to the Federal Reserve is prepared, officials told shareholders today at the annual meeting. Chief Financial Officer Bruce Thompson said revisions are due by May 27, and the regulator has 75 days to respond.
Moynihan, in his fifth year atop Bank of America, has been thwarted at least twice in attempts to boost the dividend from 1 cent, where it has languished since the financial crisis. The latest rough patch came last week when plans for an increase to 5 cents and more share buybacks were suspended because of a $4bn error in capital calculations.
The mistake at the bank was 'disappointing' to everyone, Moynihan told the gathering. Thompson affirmed that the revised plan will mean a lower payout for stockholders of the lender. He didn’t specify the amount and said he couldn’t predict the Fed’s reaction.
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