Bank of America provides details on stock redemptions

After announcing last month that it will redeem about $5.5 billion in preferred stock thanks to the Federal Reserve's approval of its capital plan, Bank of America gave shareholders more details on the redemption Monday.

All 114.4 million in outstanding Series H Depositary shares will be redeemed May 1 for $2.8 billion, while 106.9 million in outstanding Series 8 Depositary shares will be redeemed May 28 for $2.6 billion.

The Fed's approval of Bank of America's capital-distribution plan allows the bank to return capital to shareholders. Last month, the Fed, as part of an annual review process created because of the financial crisis, examined the capital plans of 18 of the country's biggest banks, approving those of 14.

Since the recession, the banks need the Fed's OK before returning capital to shareholders through either higher dividends or repurchases of shares. Bank of America, after winning the Fed's blessing for its 2013 capital plan, said it would not raise its dividend from 1 cent per share. But the bank said it will repurchase up to $5 billion in common stock.