The U.S. Federal Reserve on Monday said Bank of America had to redo a capital plan it had submitted as part of the Fed's annual stress tests, and that it told the bank to suspend any raises in shareholder capital distribution.
Bank of America had disclosed it had incorrectly reported data used in the calculation of regulatory capital ratios, and submitted those as inputs for the stress tests, the Fed said.
The bank had to resubmit its capital plan within 30 days, and correct the errors, but the Fed said it could still extend that period.
"Until receiving notice that the Federal Reserve has not objected to the new capital plan, Bank of America will not be able to increase its capital distributions, including those increases approved during the (stress tests)," the Fed said.
(Reporting by Douwe Miedema; Editing by Susan Heavey)