NEW YORK (Reuters) – Bank of America said on Monday it has begun a dialogue with the Federal Reserve to understand the different results of the central bank’s stress test and the company’s results under the Dodd-Frank Act.
The results of the Fed’s latest annual stress test released last week showed that lenders including Bank of America have enough capital to weather a severe recession, paving the way for them to issue stock buybacks and dividends.
The bank said in a statement that it wanted to understand the differences in a category called “other comprehensive income” over the nine-quarter period measured in the tests.
Bank of America, the second largest US bank, has not made any announcements about dividends or share repurchase programs since the stress test results were published.
Competitors including JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley raised third-quarter earnings on Friday after navigating a health check.
Last year, Bank of America raised its dividend to 22 cents, the highest level since 2008, from 21 cents in 2021.
(Reporting by Saeed Azhar; Editing by Lananh Nguyen and Jean Harvey)
