Market Overview

Financials, Futures Move Lower Following News BofA Has Suspended 2014 Capital Plan

Related BAC
Barclays Will Round Out Big Bank Earnings This Week
Scam, Prank Or Abstract Art? New Phony SEC Filing Indicates $88 Billion Purchase Of Bank Of America Stock
The Market Is Split, Make Sure You Are on the Right Side (GuruFocus)
Related XLF
4 Charts To Watch In The Finance Sector
What To Expect From Stocks Under A Clinton Presidency
As The Market Meanders, Hang Back For Now (Seeking Alpha)

Bank of America (NYSE: BAC) shares fell more than 4 percent to $15.28 Monday morning following news from the company the Board will be suspending the previously announced capital actions and resubmit the 2014 capital plan.

BofA claims the downward revision to the previously disclosed regulatory capital amounts and rations are due to an incorrect adjustment related to the treatments of certain structured notes assumed in the Merrill Lynch acquisition back in 2009.

Upon BofA's announcement at 8:33AM EDT, US futures fell noticeably. The S&P 500 e-mini clipped around 3 points to hit a pre-market low under 1,863. The Select Sector Financial ETF (NYSE: XLF) jumped $0.06 initially on the news, reaching $21.96 before promptly erasing any gains to settle around $21.86.

As for the other major financial players, Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), and Wells Fargo (NYSE: WFC) all saw an initial bid response, only to follow the XLF lower. Citigroup (NYSE: C) promptly shaved about 0.5 percent. Regional banks like like First Niagara (NASDAQ: FNFG) and M&T Bank (NYSE: MTB) saw no response.

Posted-In: News Futures Markets ETFs


Related Articles (BAC + C)

View Comments and Join the Discussion!