WASHINGTON (AP) -- The Federal Reserve has approved Bank of America Corp.'s revised plan for building a sturdy capital base, saying the bank has made progress in filling gaps in its plan.
The Fed announced Thursday that it wasn't objecting to the new plan filed by the second-largest U.S. bank.
Bank of America passed its annual stress test in March. But the Fed gave the bank only conditional approval to raise dividends and buy back shares, because of what the regulators saw as weaknesses in its capital plan dealing with risks and possible losses. At the same time, the bank was allowed to increase dividends and repurchase shares.
But it had to submit a new plan showing how it is building a strong financial foundation to withstand a major economic downturn.