BoA logo

Bank of America fined $7.65M by SEC because of accounting error

Written by Joseph Nordqvist

Published: 18:20, September 29, 2014

Bank of America is paying off $7.65 million because of an accounting error made five years ago.

Bank of America, accused of violating record keeping and overstating its capital levels, has agreed to pay off millions to settle federal charges.

The Securities and Exchange Commission accused the bank of failing to deduct losses on a portfolio of financial instruments that it acquired when it bought out Merrill Lynch in 2009.

The miscalculations resulted in the bank overstating its capital adequacy – how much regulators require the bank to hold – by approximately $4 billion.

The S.E.C. pointed out that the problem was self-reported by Bank of America and the bank took voluntary steps to solve the problem.

It disclosed its overstated capital levels in April. The bank cancelled plans to increase its dividend and $4 billion stock repurchases.

The bank now plans on increasing dividend shares from 1 cent per share to 5 cents per share, however, there will be no stock repurchases.

Andrew J. Ceresney, director of enforcement for the S.E.C., said:

“Bank of America self-reported its regulatory capital overstatements, remediated the issues quickly and cooperated in our investigation.”

“This penalty reflects credit for that cooperation, which allowed us to conduct our investigation efficiently and effectively.”

Joseph Nordqvist Avatar

Other News

Sony and TSMC agree $4.7 billion capital plan for image-sensor joint venture

Aug 11, 2026

Obesity linked to lower employment and reduced work performance in European review

Aug 11, 2026

Archer to acquire Boeing’s Wisk, Insitu and SkyGrid businesses

Aug 10, 2026

CECO orders nearly triple as power projects push backlog above $1.8 billion

Aug 10, 2026

Rocket Lab revenue climbs 62% as backlog reaches record $2.36 billion

Aug 10, 2026

Workforce health becomes a business issue as productivity costs mount

Aug 10, 2026

Why some companies pay much less tax than others

Aug 10, 2026

Cybersecurity study finds convenience can outweigh compliance

Aug 10, 2026

AI system helps robots perform learned tasks up to 3.2 times faster

Aug 8, 2026

Meaningful work may come from accepting career uncertainty

Aug 8, 2026

Nvidia reportedly plans up to $3 billion investment in Lancium

Aug 8, 2026

Why businesses are being urged to prepare for tighter microplastics rules

Aug 7, 2026

Retiring a working gasoline car for an EV can cut lifetime emissions, study finds

Aug 7, 2026

U.S. businesses produced more per hour, but labor’s share of output hit a record low

Aug 6, 2026

Researchers test continuous method for making leather-like fabric from fungal mycelium

Aug 6, 2026

U.S. renters expect to move less as homeownership feels further out of reach

Aug 6, 2026

CEO confidence turns positive as pessimism recedes, but investment remains cautious

Aug 6, 2026

Digital tools could reshape women’s entrepreneurship, suggest researchers

Aug 5, 2026

Success can make people learn less from their own mistakes, study suggests

Aug 5, 2026

Shopify data suggests AI search is giving niche products a new route to customers

Aug 5, 2026