Wednesday, June 18, 2014

Bank of America declares same old one-penny dividend

Bank of America shareholders won't be getting a larger dividend this quarter.

The second quarter was supposed to be when Bank of America finally declared a larger dividend. Instead, the Charlotte bank announced Wednesday that common stockholders would get 1 cent per share, the same as they've gotten since the financial crisis.

As you may recall, Bank of America said back in March that it would finally increase the dividend to 5 cents per share beginning in the second quarter after getting approval from the Federal Reserve. But they soon discovered that they'd mistakenly calculated capital ratios related to securities from Merrill Lynch. The bank was forced to scrap the dividend plans and start over.

Bank of America has since sent a new plan to the Fed, but hasn't said what it is (other than that it is smaller than what they asked for before). The Federal Reserve has yet to announce its decision on it.

Last year, Bank of America declared its second-quarter dividend in April.


Garth Vader said...

So to review:

1. BoA released a fraudulent capital ratio report that allowed for an increased dividend.

2. Upon release of that report, BoA stock went up in price, as investors thought BoA was getting its house in order.

3. It was revealed that the report was fraudulent.

4. BoA stock price plummeted, and those investors who bought during the run-up got burned on BOTH the stock price AND the vaporized dividend increase.

5. No BoA official has been indicted for deceiving investors and manipulating BoA's stock price.

Here's an idea for Andrew and Deon:

Why don't you investigate BoA with the same messianic zeal that Dan Kane is exhibiting in his pursuit of UNC athletes? Isn't massive systemic fraud at the nation's second-largest bank a little more important than Rashad McCants's paper classes?