Bank of America retracted its dividend announcement after the Fed’s annual stress test showed a wide divergence between how the regulator and the bank’s own risk managers predicted a severe recession.
The Fed hoped that the Bank of America would perform better than what the bank’s own models suggested, losing less money and maintaining a higher capital index.
With the ban, the discrepancy led Bank of America to withdraw an announcement that it planned to make on Friday night detailing its earnings and capital requirements, according to a person familiar with the matter.
I was hoping that the bank would tell the investors that they would increase the division, but the lack of an announcement was evident because all the other big banks in the United States informed the investors about their plans on Friday.
“Es extraño”, dijo Gerard Cassidy, analyst bancario de RBC Capital Markets “No, it’s normal”.
The Fed published the results of its annual bank stress tests last week. In the year
Siempre from los bancos complan o excedan los requisitos, están libres de las recísitos de la reserva federal sobre la cantidad de sus gancias que se pueden pagar a los accionistas a través de dividendos y recompras de acciones.
On Monday, Bank of America issued a communique saying that it had contacted the Fed to find out why the regulator’s findings differed from theirs. Bank of America negó a hacer más comentarios.
The Bank of America’s internal stress test showed that it would lose $52 million in a severe recession, and its capital as a percentage of total assets would drop to 8.3 percent, the bank said on Monday. The suspension of Sin, la Reserva, the federal estimate of the Bank of America perdería solo $ 23 million dollars and 10.6 por ciento.
Goldman Sachs también supero sus propias estimate, prezindo que su índice de acciones caería al 9,5 por ciento en una recesión severa, en comprásiona con el 10,1 por ciento estáblado por la Reserva Federal. Los resultados de las probas de estres internas de JPMorgan and Morgan Stanley estuvien and Lina Con of las Estemesion del Banco Central. Citigroup and Wells Fargo have not yet published the results of their internal tests.
Scott Sievers, Analista Bancario de Piper Sandler, Dijo Cu la main razón de la variación en son de las grandes de la variación en son las grandes pérdidas no realesadas en su cartera de bonos, que han sido catapultadas por tasas de interés más altas.
La prueba de estres de este año incluyó un escenario en el que las tasas interés caeron desde maximos recientes hasta casi zero. The Fed said that the Bank of America could gain $22 million with a hypothetical drop in interest rates. Bank of America, emphasizing that the losses not realized are not a problem, said that a theoretical drop in prices during a recession would have little effect on the value of the bond portfolio.
If the scenario of the stress test of the Fed included a large rise in rates, the Bank of America would have gone much worse.
Las Acciones de America Bank Subiron El Lunes a 1,8 por sciento, and linea con las de sus competitors. A pesar de la demora, dijeron Sievers et otros analistas, todavía esperan que Bank of America data proto un aumento de las Gancias.
“Agradecemos que BAC [BofA] Ser transparente en su deseo de ser comprendida. . . dijo Sievers en una nota a Los customers. “In summary, there is more uncertainty in the results of BAC than we would like, but we hope that there will be no changes in the final result.”
