BOSTON (MarketWatch) -- The Federal Reserve objected to Bank of America Corp.'s BAC, +1.53% plan for a "modest increase" in its dividend in the second half of 2011, according to a regulatory filing Wednesday morning. The company submitted a capital plan to the Fed as part of the recently completed bank stress tests. Bank of America will continue to work with the Fed and plans to "seek permission for a modest increase in its common dividend for the second half of 2011, through the submission of a revised comprehensive capital plan," according to the filing. Bank of America shares were down 1.7% in premarket trading Wednesday.