The bank last March originally received Fed permission to boost its quarterly payout from $0.01 to $0.05 (along with a $4B buyback), but was forced to withdraw that plan after discovering it miscalculated capital levels.
Bank of America (BAC) subsequently fixed the accounting issue and resubmitted a capital plan in May, and the WSJ reports the lender is requesting the same size dividend, though the buyback plan has been toned down.
For the bank - which has made boosting the dividend a top priority - the move projects to the Fed a sign of strength and that there are no more accounting cockroaches out there. For the Fed, its decision will establish a precedent for how these errors might be dealt with in the future.
All this is happening as pressure mounts for BofA to come to a settlement with the DOJ over mortgages, and word is Eric Holder has no interest in talking turkey with Brian Moynihan until their lieutenants get a lot closer to a final deal.
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