NEW YORK ( TheStreet) -- Bank of America (BAC) shares were rising early Tuesday as the bank resubmitted a capital plan to regulators following a $4 billion error that forced it to scrap a planned dividend hike and share repurchase.
Shares of the Charlotte, N.C.-based banking giant were higher by 2.92% to $15.15 . By contrast, shares of Citigroup
(C) were up 1.59%, JPMorgan Chase
(JPM) shares were up by 1.06% and Wells Fargo
(WFC) by 0.16%.
Bank of America stated in a regulatory filing Tuesday it had engaged a third party "to perform certain procedures related to" an annual capital submission process known as the Comprehensive Capital Analysis and Review (CCAR). The review was in response to the $4 billion error Bank of America discovered it had made in calculating its capital ratios, disclosed by the bank April 28. The error dates back to Bank of America's acquisition of Merrill Lynch at the start of 2009 and went undetected by the bank for years. Bank officials finally unearthed the problem as a result of a change in wording on Federal Reserve forms earlier this year, The Wall Street Journal reported Tuesday, citing anonymous sources.
The review is complete and it resulted in an adjustment of less than .01% on one of the periods under review, and no effect on the other period. Still, Bank of America reiterated it would be more conservative in its requests regarding dividend and share repurchase than it had been before it discovered the $4 billion error. Bank of America had planned to raise its quarterly dividend by $0.05 per share and buyback up to $4 billion in stock.
Bank of America shares have been under pressure ever since the April 28 error was disclosed, falling nearly 8% from that date going into Tuesday's open. That performance compares to a 2.10% drop for JPMorgan, a 0.96% fall for Citigroup and a 2.25% gain for Wells Fargo.
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