WHEN: Today, Monday, April 28th
WHERE: CNBC's "Squawk on the Street"
Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000270836.
All references must be sourced to CNBC.
KATE KELLY: WELCOME BACK TO "SQUAWK ON THE STREET." I'M KATE KELLY WITH SOME BREAKING NEWS ON THE B OF A ANNOUNCEMENT OF THIS MORNING. AS YOU RECALL, THEY ARE GOING TO RESUBMIT THEIR CAPITAL PLAN TO THE FED THAT WILL TAKE PLACE ON MAY 27THAS A RESULT OF AN ERROR DISCOVERED JUST IN THE LAST 72 HOURS OR SO ON THE REGULATORY CAPITAL ACCOUNTING FOR SOME STRUCTURED NOTES THAT GO BACK TO 2009. B OF A CEO BRIAN MOYNIHAN HELD AN EXECUTIVE CALL AROUND 9 O'CLOCK THIS MORNING TO DISCUSS SOME OF THESE CAPITAL ISSUES WITH SENIOR EXECUTIVES. APPARENTLY IT WAS BRIEF AND ALSO REASSURING. THIS WAS SORT OF AN ISOLATED PROBLEM ALBEIT ONE THAT WENT UNNOTICED FOR A FULL ALMOST FIVE YEARS. AND IT IS SOMETHING THAT COULD EFFECT THEIR DIVIDEND AND THEIR BUY BACK PLAN. THEY DON'T KNOW THE DIVIDEND, WHICH WAS SCHEDULED TO GO UP TO A NICKLE PER QUARTER, STARTING IN THE SECOND QUARTER, MAY BE AFFECTED. PERHAPS NOT, THOUGH. PERHAPS THE PAIN WILL BE TAKEN IN THE BUY BACK RATHER THAN THE DIVIDEND. IN ADDITION, TERRY LAUGHLIN, UNTIL RECENTLY, THE COMPANY'S CHIEF RISK OFFICER, IS GOING TO BE REASSIGNED TO MANAGE THIS CAPITAL RESUBMISSION PROCESS. HE WAS RECENTLY MOVED INTO A STRATEGIC POSITION UNRELATED TO THIS I'M TOLD, INITIALLY, BUT NOW HE IS GOING TO BE IN CHARGE OF WORKING WITH THE COMPANY AND WORKING WITH THE FED TO MAKE SURE THAT EVERYTHING IS ACCOUNTED FOR WHEN THEY RESUBMIT. THIS ERROR WAS DISCOVERED, GUYS, IN THE COURSE OF PREPARING THE 10-Q, WHICH WAS SUPPOSED TO BE ISSUED THIS WEEK. THEY ARE GOING TO WORK TO REMEDY IT AND OBVIOUSLY GET THE Q OUT AS FAST AS POSSIBLE. BUT SARA, YOU KNOW, OBVIOUSLY, A BIG BLACK EYE FOR BANK OF AMERICA THIS MORNING. A VERY UNFORTUNATE NEW DEVELOPMENT AND THE STOCK IS GETTING HAMMERED.
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