NEW YORK (
Bank of America
and other banks will be forced to pay lower dividends and make fewer share buybacks as a result of tougher new capital requirements, CEO Brian Moynihan told investors Tuesday, according to the
Moynihan made the comments at a financial services conference hosted by Bank of America.
Investors in the U.S. banking sector have been eagerly awaiting moves such as dividend hikes and share buybacks, but banks have been waiting for approval from regulators.
Federal Reserve Governor Daniel Tarullo said publicly the Fed expects to issue guidance on when banks can increase their dividends in the first quarter. Banks including
are expected to be among the first banks to raise their
, something they haven't done since the crisis.
Moynihan also addressed the bank's problems with a sloppy foreclosure process, among other issues. According to an initial transcript of his speech, Moynihan also said the bank has gone from 30,000 to 50,000 employees in its mortgage unit as it tries to address problems with its foreclosure process.
"It's not a major issue," he said of the costs of improving the bank's foreclosure methods. Citing what he said were similar comments by CFO Charles Noski during third quarter earnings, Moynihan put the cost of the additional hires at $10-20 million. Bank of America also faces potential litigation exposure around the issue, though it has won some early victories on that front.
Speaking before Congress Tuesday, Bank of America home lending chief
acknowledged problems but said the bank has not seized any homes improperly.
Written by Dan Freed in New York
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