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Fed gives big U.S. banks a green light for buyback, dividend plans – Reuters

June 29
15:15 2017
By Pete Schroeder and David Henry | WASHINGTON/NEW YORK

The Federal Reserve has approved plans from the 34 largest U.S. banks to use extra capital for stock buybacks, dividends and other purposes beyond being a cushion against catastrophe.

On Wednesday, the Fed said those lenders, including household names like JPMorgan Chase & Co and Bank of America Corp, had passed the second, tougher part of its annual stress test. The results showed that many have not only built up adequate capital buffers, but improved risk management procedures as well.

One bank, Capital One Financial Corp, must resubmit its scheme by year-end, though the Fed is still allowing it to go forward with its capital plan in the meantime.

Fed Governor Jerome Powell, who is acting as regulatory lead for the U.S. central bank, said the process “has motivated all of the largest banks to achieve healthy capital levels and most to substantially improve their capital planning processes.”

Continue Reading At Reuters

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