Deutsche Bank Gets a Win as Fed Unleashes Payouts for Banks
- All 18 banks including embattled German firm pass stress test
- Endorsement of U.S. unit is boost for Deutsche Bank CEO Sewing
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Titans of the U.S. banking industry said they will pump out more cash to shareholders after all 18 lenders passed the Federal Reserve’s annual stress tests. The results were a particular win for Deutsche Bank AG after it repeatedly failed past exams.
A dozen of the nation’s largest lenders said they will boost payouts through dividends and stock buybacks 18% to more than $173 billion, a record for the group. Shares of Deutsche Bank gained in Frankfurt, while U.S. lenders including JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. rose more than 2.5% in New York.