Fed orders Bank of America to revise dividend, buyback plans
MARCH 11, 2015 LAST UPDATED: WEDNESDAY, MARCH 11, 2015, 4:38 PM
THE ASSOCIATED PRESS |
WIRE SERVICE
WASHINGTON – The Federal Reserve is ordering Bank of America to revise its plans for increasing dividends or buying back stock, saying there are gaps in its risk planning.
The Fed announced the decision Wednesday as part of its “stress tests” – an annual check-up of the nation’s biggest financial institutions. This year, 31 banks were tested to determine if they have large enough capital buffers to keep lending through another financial crisis and severe economic downturn.