Fed Indicates Bank of America (BAC) Not Yet Steady Enough to Raise Dividend in 2nd Half
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Last week saw the return of the big-bank dividend after the Fed performed stress tests and gave permission to those institutions that could handle returning capital to shareholders.
Banks taking quick action to raise dividends included Wall Street giants JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC) and BB&T Corp. (NYSE: BBT), among others.
One glaring exclusion remains Bank of America Corp. (NYSE: BAC). Today the company disclosed in an SEC filing that the Federal Reserve objected to its proposed modest increase in its common dividend starting in the second half of 2011.
BofA was informed that it could re-submit a revised capital plan.
BofA said it will continue to work with the Fed and does intends to seek permission for a modest increase in its common dividend for the second half of 2011.
The bank's Tier 1 common equity increased 13 percent in 2010, as its Tier 1 common equity ratio hit 8.6 percent from 7.1 percent in 2009.
Bank of America shares are down 2.3 percent to $13.56 in premarket trade on Wednesday.
Banks taking quick action to raise dividends included Wall Street giants JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC) and BB&T Corp. (NYSE: BBT), among others.
One glaring exclusion remains Bank of America Corp. (NYSE: BAC). Today the company disclosed in an SEC filing that the Federal Reserve objected to its proposed modest increase in its common dividend starting in the second half of 2011.
BofA was informed that it could re-submit a revised capital plan.
BofA said it will continue to work with the Fed and does intends to seek permission for a modest increase in its common dividend for the second half of 2011.
The bank's Tier 1 common equity increased 13 percent in 2010, as its Tier 1 common equity ratio hit 8.6 percent from 7.1 percent in 2009.
Bank of America shares are down 2.3 percent to $13.56 in premarket trade on Wednesday.
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