While it's questionable how much capital the Fed will allow Bank of America (BAC) to return to...

|About: Bank of America Corporation (BAC)|By:, SA News Editor

While it's questionable how much capital the Fed will allow Bank of America (BAC) to return to shareholders, the bank doesn't need D.C.'s permission to pick off some low-hanging fruit - redeeming Warren Buffett's $5B in preferred stock. The shares do not qualify as capital under new Basel rules, but BofA pays 6% on them, nearly double the average of its long-term debt.