Fed bars BofA from raising dividends after flawed capital submission
BofA's ‘inaccurate adjustment' caused bank to ‘overstate' capital ratios
The Federal Reserve has ordered Bank of America to suspend planned dividend increases after the lender revealed today that inaccuracies "related to the treatment of certain structured notes assumed" in its takeover of Merrill Lynch in 2008 has caused it to "overstate" capital ratios.
Bank of America said it had revised down its capital and leverage ratios – most recently submitted to the Fed as part of the central bank's Comprehensive Capital and Analysis Review (CCAR) wrapped up last month –
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