Banks Easily Clear Stress Tests, Setting Stage for Payouts
- Results show all firms well above Fed’s capital minimums
- Pandemic-era restrictions on dividends, stock buybacks lifted
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Wall Street banks are poised to announce a deluge of dividend increases and stock buybacks after the Federal Reserve’s stress tests showed the industry built up a stockpile of cash during the pandemic.
Lenders can announce their plans for distributing capital after the market closes on June 28, and the industry’s strong results mean payouts may be the largest ever following the Fed’s annual exams. Early estimates indicate the six biggest U.S. banks, including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., could return more than $140 billion to shareholders.