New York: Bank of America’s Board of Directors authorized a $4 billion common stock repurchase plan. The Federal Reserve Board (Fed) told it that it completed its 2015 Comprehensive Capital Analysis and Review and it did not object to the company’s capital plan for the period from the second quarter of 2015 through the second quarter of 2016.
It includes the $4 billion stock repurchase program and maintaining the common stock dividend at the current rate of $0.05 per share per quarter.
The Fed also asked Bank of America to submit an additional capital plan by September 30, 2015 addressing certain weaknesses identified in the company’s capital planning process. If Bank of America does not make material progress in addressing these key weaknesses, the Fed may restrict the company’s capital distributions.
Chief Executive Officer Brian Moynihan said, “Over the last few years, we have simplified the company, sharpened our focus on serving customers and we are returning capital to our shareholders. We believe that this year’s planned repurchase program is the best way to continue to drive value for our shareholders. We are committed to meeting the requirements in the time frame the Fed has established.”
