Bank of America has delayed a dividend announcement after the Federal Reserve’s annual stress test showed a significant discrepancy between how the regulator and the lender’s own risk managers predicted it would fare in an extreme downturn.
The Fed predicted BofA would in fact perform more favourably than the bank’s own models suggested, losing less money and maintaining a higher capital ratio.
However, the discrepancy prompted BofA to delay an announcement it had planned to make on Friday evening detailing its dividend and capital requirements, according to a person familiar with the matter.
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