The results of the Fed's Comprehensive Capital Analysis and Review, or CCAR, round of stress tests are out, and Bank of America (NYSE: BAC ) has officially been given the go-ahead to bump up its dividend, and initiate a share repurchase program.
The test, which includes three different scenarios at varying levels of crisis severity to show how each bank would fare if another crisis were to occur, showed that at the very worst level, Bank of America's numbers didn't look great, forcing the bank to scale back the dividend and share repurchase programs that it wanted.
However, it was still granted a non-objection to $4 billion in share repurchases, and an increase in its quarterly dividend from one cent to five cents, for a total of $0.20 per share per year.
In this segment of Thursday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson take a look at Bank of America today.
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