Bank of America was unable to accomplish what Citigroup was able to do - get the Federal Reserve to accept its plan to increase its dividend in 2011.  The government objected to BofA's dividend plan, based on results from the 2nd round of stress tests - results were released last Friday.

BofA originally submitted its intentions to the Fed in January, outlining a proposal to maintain its current payout - a penny a share - for Q1 and Q2 of 2011, and institute a "modest increase" beginning in Q3 of 2011.  Bank of America now says it will rework the proposal.

"The corporation will continue to work with the Federal Reserve and intends to seek permission for a modest increase in its common dividend for the second half of 2011, through the submission of a revised comprehensive capital plan to the Federal Reserve."   -  as per BofA's 3/22 regulatory filing.

    Stress Test Results.   After the results of the stress tests came out, other big banks quickly laid out their plans to raise dividends, as well as buy back stock.  All approved by the Fed.  JPMorgan Chase and Wells Fargo announced proposals to reward shareholders.  Citigroup made a symbolic gesture, saying it would start paying a penny a share to investors. But no such announcement came out of Bank of America.  Of course, that could all change - if the Fed approves the bank’s revised plan.   [Bloomberg, 3/23]