Bank of America Acknowledges Fed Nixed Dividend Plan

The Federal Reserve objected to Bank of America Corp.'s plan to raise its dividend, the Charlotte, N.C., company confirmed on Wednesday.

B of A, which was not among the group of large banks that the central bank approved for dividend increases Friday, said in a Securities and Exchange Commission filing that it plans to submit a revised capital plan to the Fed that includes a "modest" increase in its common dividend.

The Fed notified B of A of its decision on Friday.

An analyst with KBW Inc. said in a recent research note that the Fed objected to the bank's plan because its "capital levels were simply too far behind peers," Bloomberg News reported on Monday.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER