Market Overview

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

Share:
Related BAC
5 Undervalued Stocks to Watch Ahead of Earnings
Earnings: Will Goldman Sachs, Citigroup Earnings Follow Other Big Banks?
The Vetr community has upgraded $BAC to 3.5-Stars. (Vetr)
Related XLF
Dan Nathan's Financial Select Sector SPDR Fund Hedge
Finally, Mid-Cap Sector ETFs
Healthcare, Consumer Staples For 2017? - Bezek's Daily Briefing (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!