After initially passing the Federal Reserve's recent round of stress tests and being granted the ability to raise its dividend and initiate a share repurchasing program, Bank of America has now notified the Fed that it mistakenly reported $4 billion in additional capital. The bank will now be forced to suspend its planned increases to shareholder distributions.

On Tuesday's Investor Beat, host Alison Southwick and Motley Fool analysts Mike Olsen and Brendan Mathews take a look at how an error of this size could have happened, and just how badly this could damage both the credibility of the bank, as well as the credibility of the Fed's stress tests. Mike also mentions that this demonstrates just how many unknowns there truly are for investors in banks of this size.

Later in the show, Mike and Brendan each pick one stock they've got a close eye on right now. Mike looks at a company with large  the market share and barriers to entry for competitors to this knee and hip replacement company. Meanwhile, Brendan takes a look a payments company, and says he'll be looking very carefully at consumer-to-consumer transaction volume when the company reports earnings Thursday. If people are continuing to use the service, he could see the stock as very cheap today.

Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for them, but great for investors. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.

Alison Southwick owns shares of AT&T.; Brendan Mathews has no position in any stocks mentioned. Michael Olsen, CFA has no position in any stocks mentioned. The Motley Fool recommends Bank of America, Coach, and Western Union. The Motley Fool owns shares of Bank of America, Coach, JPMorgan Chase, and Zimmer Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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