Since news of Bank of America's
Financial columnist James Saft argued that Bank of America's mistake offers further evidence that big banks are too complex:
$BAC sanctions one more datapoint in evidence that bigest banks are TBTF, TB to manage and TB in which to invest. Total crapshoot.
James Saft (@jamessaft) April 28, 2014
Overly complicated systems lead to blunders on the part of both banks and regulators, according to Neil Barofsky, a former Special Inspector General for the Troubled Asset Relief Program and current partner at law firm Jenner & Block.
Says something about reliability of cornerstone of our big bank regulatory system -- Error by BofA Kills Buyback http://t.co/CUPMBPeyMk
Neil Barofsky (@neilbarofsky) April 29, 2014
@neilbarofsky or highlights the over the top complexity of the administration's regulatory changes
Garcia Capital (@gstergio) April 29, 2014
@gstergio one and the same
Neil Barofsky (@neilbarofsky) April 29, 2014
@neilbarofsky ahhhh misunderstood thought you were blaming the banks, these rules are so complicated it takes months to calculate ratios
Garcia Capital (@gstergio) April 29, 2014
@gstergio I blame all, system and banks too complex, too prone to error and too easy to game.
Neil Barofsky (@neilbarofsky) April 29, 2014
@neilbarofsky sadly, that's fair. Bank of America error is only the tip of the iceberg
Garcia Capital (@gstergio) April 29, 2014
Another prominent former regulator, ex-Federal Deposit Insurance Corp. chief Sheila Bair, found fault with needlessly convoluted accounting rules and capital requirements.
@BCAppelbaum This is why both the accounting and capital rules need to be simplified. Their excessive complexity leads to mistakes.
Sheila Bair (@SheilaBair2013) April 30, 2014
The New York Times' Binyamin Appelbaum suggested that Bank of America's error may cast doubt on other stress test results:
How are we feeling this morning about the accuracy of the stress test numbers for all the other big banks?
Binyamin Appelbaum (@BCAppelbaum) April 28, 2014
But at least one respondent felt comfortable trusting other banks' ability to do the math.
@BCAppelbaum Apparently, at least the other banks can add their own internal numbers
Tom Adams (@AdvisoryA) April 28, 2014
A few people on Twitter puzzled over Bank of America's relative quiet in the aftermath of the big reveal.
If I were CEO or CFO of $BAC , I'd have given serious consideration to doing a conference call.
Ivan the K (@IvanTheK) April 28, 2014
@IvanTheK Not if you were not prepared to answer questions or had no idea what was going on. Sometimes silence is best.
Ya ne znaiu (@Yaneznaiu) April 28, 2014
Bank of America's public relations strategy was also called into question when the lender's customer service account, @BofA_Help, inadvertently got involved in a discussion of the accounting error. The bank's Twitter handle picked up on a tweet from Alexis Goldsteinthe communications director of The Other 98%, a grassroots organization that defines itself as "standing against Big Money and corporate lobbyists."
1. How much capital do you have? 2. Did I pay my mortgage last month? Two questions BofA can't answer: http://t.co/gxswtEBChY cc @anatadmati
alexis goldstein (@alexisgoldstein) April 28, 2014
@alexisgoldstein @josheidelson @anatadmati With TBTF Banks allowed to hold trillions in derivatives off book their numbers are a joke anyway
FogBelter (@FogBelter) April 28, 2014
@alexisgoldstein We would be happy to discuss your concern. Please DM the your zip, phone # and best time to call. ^sj
Bank of America (@BofA_Help) April 28, 2014
@BofA_Help Sorry? My concern is that your bank is unmanageable, both by yourself & by regulators. But tell Moynihan I said long time no see.
alexis goldstein (@alexisgoldstein) April 28, 2014
Meanwhile, Suffolk Law School professor Kathleen Engel expressed hope that Bank of America's error would teach it compassion toward customers who make their own mistakes.
#BofA can't count. Maybe this will make the bank feel empathy toward consumers http://t.co/qvg1QasirG
Engel (@KathleenCEngel) April 29, 2014