BofA Selling Stock, Cutting Dividend (Update)

Updated from 4:44 p.m. EDT

Bank of America (BAC Quote) said Monday it's cutting its quarterly dividend in half and aiming to raise $10 billion in order to shore up its capital base.

The announcement came as the company revealed its quarterly earnings roughly two weeks before it was scheduled to do so. Charlotte-based Bank of America said it earned $1.18 billion, or 15 cents a share, in the third quarter, down from $3.70 billion and 82 cents a share in the same period a year earlier.

As for its capital plans, the bank said it's targeting a Tier 1 capital ratio of 8%. To achieve that, the company plans to sell up to $10 billion of common stock and slash its dividend to 32 cents a share from 64 cents. ...