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.
2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.