Moynihan: Suspended dividend increase tough on investors

Bank of America Corp.’s gaffe on U.S. stress tests has meant “tough consequences” for investors, CEO Brian T. Moynihan said Wednesday as his staff and directors regrouped to figure out what went wrong. More

To continue reading this article, please do one of the following.



banking

Moynihan: Suspended dividend increase tough on investors

Posted 5/7/14

Bank of America Corp.’s gaffe on U.S. stress tests has meant “tough consequences” for investors, CEO Brian T. Moynihan said Wednesday as his staff and directors regrouped to figure out what went wrong.

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 Wednesday at the annual meeting in Charlotte, N.C. 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 $4 billion error in capital calculations.

The mistake at the Charlotte-based bank was “disappointing” to everyone, Moynihan told the gathering. Thompson affirmed that the revised plan will mean a lower payout for stockholders of the second-largest U.S. lender. He didn’t specify the amount and said he couldn’t predict the Fed’s reaction.

All the 15 directors standing for election and the independent accounting firm won approval during Wednesday’s vote, the company said in a statement, without giving the tally.

The bank is still wrestling with legal claims inherited from his predecessor’s crisis-era takeovers of Countrywide Financial Corp. and Merrill Lynch & Co., and investors pressed for answers on when the last of the disputes will be resolved. Moynihan, 54, declined to give a timetable.

Dividend history

Bank of America had shown progress, improving profit last year to $11.4 billion, the highest since 2007. Investors had speculated the company would start to rebuild its quarterly dividend toward the 64 cents offered before the financial crisis.

Next Page
Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement