Bank of America told by the Fed to adjust its dividend plan

The US Federal Reserve ordered Bank of America to adjust its plans for a modest dividend increase, which is a sign that regulators see the bank as being still financially weaker than other financial institutions.

BofA’s plans were to get into the second wave of banks raising dividends in the second half of this year. In comparison with its rivals like JPMorgan Chase & Co and Wells Fargo, Bank of America has less capital and is still heavily struggling to remain consistent.

Over the past quarter BofA has suffered from mortgage related losses and it is likely to repurchase billions of toxic mortgages from investors.

The largest U.S. bank by assets did not disclose how much of a dividend increase it was looking for, and did not give a reason for the rejection.

The bank said it intends to submit a revised proposal to the Fed and still hopes to increase its dividend in the second half of the year.