AP : Fed rejects Bank of America’s dividend hike plan
Bank of America said Wednesday the Federal Reserve has objected to its plan for raising its dividend in the second half of this year, a setback that suggests regulators need to see more evidence that the nation’s largest bank is strong enough to weather another recession.
But the bank said in a regulatory filing that it’s been given another opportunity to submit a comprehensive plan to the Fed so that the central bank may reconsider its decision. The Charlotte, N.C., bank expects to resubmit a request to dole out a higher second-half dividend.
The bank has paid a penny-per-share quarterly dividend for the last two years. Its last one-cent dividend was declared in January and payable on Friday. The dividend peaked at 64 cents in mid-2008 before being halved to 32 cents later that year.
Bank of America shares fell 14 cents, or 1 percent, to $13.74 in pre-market trading.