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Bank of America's capital offense

Bank's about-face on dividend, buyback plans blows away recently returned investor confidence

Too big to fail or just too complex to manage? Bank of America on Monday reminded investors it is easy for banking behemoths to be both.

BofA said a flaw in the way it was calculating regulatory capital had punched a more-than-$4 billion hole in its loss-absorbing buffer. This led it to suspend a planned $4 billion share buyback and increase of its quarterly dividend to five cents a share from a penny.

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