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Should Bank of America Ask for a Big Dividend?

In the Dodd-Frank banking stress test results that we saw come out last week, Bank of America (NYSE: BAC  ) has managed to increase the amount of capital it has on hand significantly since last year. But with the results of the CCAR stress test coming out later this week, which is the test that determines whether or not the Fed will allow banks to increase their dividends or buy back shares, is Bank of America healthy enough now for investors to expect a dividend increase?

In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss the discrepancy between Bank of America's version of the stress test results vs. the Fed's version, and Matt tells us what he would like to see Bank of America do this week with its dividend. 

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  • Report this Comment On March 11, 2013, at 4:09 PM, questioner5000 wrote:

    Actually, BAC's estimate of its own performance under the Stress Test parameters was WORSE than what the Fed said the bank would do. Thus, I guess this is the time for BAC to say to the Fed, "O.K., you're right. We were too pessimistic. Let us raise our Dividend to 4 cents/5 cents, and buy back $1BN in shares."

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