Connect with us

archive

Bank of America Botches Stress Test, Investors Lose out

Bank of America Botches Stress Test, Investors Lose out (CNNMoney)

If you’ve ever chastised yourself or a loved one for not balancing a checkbook, I hope you don’t own shares of Bank of America (BAC). The U.S. Federal Reserve ordered BAC to forget its plans to buy back shares from its investors and to cancel a planned dividend increase in the aftermath of the bank failing its recent stress test. The Fed announced BAC submitted incorrect capital ratios, which skewed stress test results. Bank officials blamed an “incorrect adjustment” linked back to when BAC acquired Merrill Lynch in 2009. Whatever the real cause, the result is the same: Bank of America has to resubmit to pass a new stress test and its current shareholders lose out in the meantime.

Newsletter Signup.

Sign up to the Human Events newsletter

Advertisement
Advertisement

TRENDING NOW:

Obama Judges Kill Americans’ Privacy to Help Democratic House Harass Trump

U.S. POLITICS

MILK-FAKE: UK Papers Push Farage Fake News 1 Day Before Election

FOREIGN AFFAIRS

Extinction Rebellion’s Useful Idiots: Climate Alarmism Does Far More Harm Than Good

FOREIGN AFFAIRS

Nigel Roars Back: Human Events Endorses Brexit Party.

FOREIGN AFFAIRS

The U.S. Federal Reserve ordered BAC to forget its plans to buy back shares from its investors and to cancel a planned dividend increase in the aftermath of the bank failing its recent stress test.

archive

Bank of America Botches Stress Test, Investors Lose out

The U.S. Federal Reserve ordered BAC to forget its plans to buy back shares from its investors and to cancel a planned dividend increase in the aftermath of the bank failing its recent stress test.

Bank of America Botches Stress Test, Investors Lose out (CNNMoney)

If you??ve ever chastised yourself or a loved one for not balancing a checkbook, I hope you don??t own shares of Bank of America (BAC). The U.S. Federal Reserve ordered BAC to forget its plans to buy back shares from its investors and to cancel a planned dividend increase in the aftermath of the bank failing its recent stress test. The Fed announced BAC submitted incorrect capital ratios, which skewed stress test results. Bank officials blamed an ??incorrect adjustment? linked back to when BAC acquired Merrill Lynch in 2009. Whatever the real cause, the result is the same: Bank of America has to resubmit to pass a new stress test and its current shareholders lose out in the meantime.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

TRENDING NOW:

Obama Judges Kill Americans’ Privacy to Help Democratic House Harass Trump

U.S. POLITICS

MILK-FAKE: UK Papers Push Farage Fake News 1 Day Before Election

FOREIGN AFFAIRS

Extinction Rebellion’s Useful Idiots: Climate Alarmism Does Far More Harm Than Good

FOREIGN AFFAIRS

Nigel Roars Back: Human Events Endorses Brexit Party.

FOREIGN AFFAIRS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter