BofA wins Fed OK for resubmitted capital plan

Bank of America has won approval from the Federal Reserve to raise its quarterly common stock dividend to 5 cents after it had to scrap the same plan earlier this year following a math error.

On Wednesday, the Charlotte bank said the Fed has approved its resubmitted capital plan. The resubmitted plan does not call for a stock buy-back, unlike the bank's original plan approved by the Fed in March.

In March, the Fed OK'd the bank's plan to raise its dividend, which had been stuck at 1 cent since the financial crisis, as well as buy back $4 billion in common stock.

But in April, the bank said it was suspending those plans after the bank discovered it had been miscalculating its capital ratios.

"This marks the first increase in Bank of America’s quarterly common stock dividend in seven years and reflects the significant progress the company has made to strengthen the balance sheet and build capital and liquidity," Bank of America said in a press release.

Since the financial crisis, the biggest U.S. banks must receive approval from the Fed to return capital to shareholders such as through higher dividends or buying back stocks.