BANK of America Merrill Lynch suspended its plans to buy back shares and hike its dividend yesterday, after it found it had miscalculated its capital position. The bank mis-counted the value of structured notes issued by
The mistake overstated its capital position by roughly
BAML had planned to return money to investors with a
That process is now on hold while the bank re-calculates its capital position.
Once that is complete, BAML can go ahead with the dividend hike and buyback, at a lower level than initially planned.
The bank's shares dived 6.3 per cent after the announcement.
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