BofA’s Bad Loans May Have Delayed Plan to Raise Payout, KBW Says
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Bank of America Corp., the biggest U.S. lender by assets, must resubmit plans for a dividend increase to the Federal Reserve because the regulator probably found fault with the firm’s capital, according to KBW Inc.
The bank faces too many unknowns about soured mortgages for the Fed to allow a significant increase to payouts until 2012, Frederick Cannon, director of research at KBW in New York, wrote in a note released late yesterday. Bank of America said March 18 that it would resubmit a dividend proposal in the second half of this year.