Fed's second bank stress test done in groups

The Federal Reserve is staggering stress tests for the 19 largest US banks, depending on when the lenders want to increase their dividend in 2011, Bank of America Corp Chief Financial Officer Charles Noski said. In an interview with Reuters on Friday, Noski said the US central bank was first reviewing the capital plans for banks that want to raise dividends by mid-year 2011.
Banks that are targeting a dividend increase for the second half of the year will have their test results released later as part of a second group. Lenders in this group may have to submit supplemental financial information, Noski said. Bank of America, the largest US bank by assets, plans to raise its dividend, now at 1 cent per share, in the second half of 2011, if it receives Fed approval. Noski said the bank planned a "modest increase" in the shareholder payout, but declined to state what the increase would be.