As CEO Brian Moynihan stated, “We have simplified our company and we have more than adequate capital to support our strategic plans. We are well positioned to return excess capital to our shareholders.”
Needless to say, investors cheered the announcement, and BofA’s stock price rose nicely as a result.
Fast forward 45 days… and boy what a difference reality makes.
This morning Bank of America rather embarrassingly said it would suspend the stock buyback, stating that they had been ordered to do so by the Federal Reserve.
Moreover, the company must suspend its planned quarterly dividend increase.