The U.S. Federal Reserve has denied Bank of America’s (BofA) plan to raise its dividend in the second half of 2011, Financial Times reports. The Fed’s decision was based on confidential stress tests conducted on the nation’s 19 largest financial institutions.
BofA will be able to resubmit a proposal as soon as next month and get the decision before the end of June 2011. The FDIC also turned down the request of Capital One Financial for a dividend increase, adds The Wall Street Journal.
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