Nation’s top-paid bank CFO cops to $4B BofA snafu

Bank of America’s Bruce Thompson just went from hero to zero.

Thompson, who ranked as the highest-paid bank chief financial officer in the country last year, is responsible for last week’s embarrassing disclosure that the banking giant had screwed up billions of dollars on its balance sheet for the past five years.

Thompson admitted Wednesday during the bank’s annual investor meeting that the $4 billion miscalculation originated “within several areas of the CFO group” when preparing regulatory filings. The bank’s board learned about the issue within “24 hours” of its discovery, he said.

Thompson was promoted to CFO in 2011 after serving as chief risk officer — meaning it took his team almost 35 months to catch the error.

But the math gaffe is unlikely to put a dent in his 18-year career at the bank. “We’re not focused on who’s to blame and who’s at fault here,” said Jerry Dubowski, a bank spokesman.

Thompson earned the title of top-paid bank CFO last year after raking in $11.4 million in 2012, according to SNL Financial. His lofty pay was a reward for managing the sprawling bank’s complex balance sheet.

In March, Chief Executive Brian Moynihan said stockholders could expect $4 billion in buybacks and an increase in the dividend to 5 cents from a penny. While the CEO wanted to sweeten the deal for investors, he might have to wait until October.

BofA has until May 27 to submit a new plan — with the correct balance sheet — for the Fed to consider any change in the capital distribution, Thompson said. After that, the Fed has 75 days, or until right around Sept. 4, to respond. The bank will “reduce” how much it seeks, meaning that investors will have to wait longer for less.

At the annual meeting in Charlotte, NC, Thompson said that an investigation was under way but declined to give specifics.

“They gave us no choice but to accept, ‘give us time,’ ” said Mike Mayo, a CLSA analyst who was present.