The Securities and Exchange Commission says Bank of America will pay $7.65 million to settle allegations that it overstated how much capital it had on its books. Bank of America said in April that it had made a mistake in how it valued securities obtained in its acquisition of Merrill Lynch during the financial crisis in 2009. Banks are required to have capital buffers that are large enough to keep lending through another financial crisis. The Federal Reserve subjects the banks to annual stress tests to check on their condition. The SEC says Bank of America overstated the amount of capital it had on hand, which means the data the Fed used in its testing of the bank was incorrect. The SEC says the size of the overstatement eventually reached the billions of dollars.
Posted on: Mon, 29 Sep 2014 23:30:00 +0000
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