NEW YORK (AP) -- Bank of America says the Federal Reserve has objected to its plan for raising its dividend in the second half of this year.
But the bank said in a regulatory filing Wednesday 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 second-half dividend.
Bank of America shares fell 27 cents, or 2 percent, to $13.61 in pre-market trading.
Last week, the U.S. Federal Reserve cleared the way for major lenders to increase their dividends if they passed stress tests. Banks had been forced to cut dividends to preserve cash following the financial crisis. It was a condition of the government's bank bailout package.
Citigroup on Monday said it planned to reinstate a penny-per-share quarterly dividend.
(Copyright 2011 by The Associated Press. All Rights Reserved.)