The Federal Reserve has instructed Bank of America to revise its capital plan by September 30, to address weaknesses in the bank's capital planning process, according multiple media reports on Wednesday. Bank of America stated in a press release on Wednesday that the company's Board of Directors authorized a $4 billion common stock repurchase program and that the Fed had completed its 2015 Comprehensive Capital Analysis and Review and informed the Charlotte, North Carolina-based megabank that the Fed did not object to the bank's capital plan.
Due to certain weaknesses in Bank of America's capital planning process the Fed located in its recent annual stress test, however, the central bank asked Bank of America to submit a revised plan by September 30, 2015. The Fed may restrict Bank of America's capital distributions if the bank does not make any material progress in addressing the weaknesses that were found. If the Fed accepts the revised plan, Bank of America will be able to pay out higher dividends or buy back stock.
Freddie Mac Deputy Chief Economist Len Kiefer, who will be a keynote speaker at the upcoming Five Star Government Forum in Washington, D.C., on March 18, predicted in Freddie Mac's March 2015 Economic and Housing Market Outlook that the coming year would be the best for housing since 2007, immediately prior to the crash. A big reason for the bright outlook for the housing market is improved job prospects for those ages 25 to 34, commonly known as millennials. The employment rate for millennials is up to 76.8 percent, its highest level since 2008.