Bank of America is to suspend stock repurchases, a dividend increase and will resubmit a capital plan, after it uncovered an incorrect accounting adjustment. If it gets regulatory approval to start them again, it'll likely be returning less to shareholders than it initially promised, the Wall Street Journal reports
The company said it will review its financial accounts and plans to request a capital action plan that is less than its previously announced 2014 plan.
The suspension of its capital-return plans happened at the "request" of the Federal Reserve after the bank told the Fed of the miscalculations, according to a Bank of America statement.
Bank of America had been approved to spend $4 billion on buybacks and planned to increase is quarterly dividend from 1 cent to 5 cents per share.
The company said it "will expeditiously resubmit" its proposed capital plan to the Fed but that it "expects the requested capital actions...will be less than the company's previously announced 2014 capital actions."
If the bank doesn't get a fresh approval from the Fed by the time it's supposed to pay its dividend, it would pay a penny per share, the Journal noted.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: