Biggest US Banks Boost Payouts After Lighter Fed Stress Test

Wall Street’s largest lenders boosted their dividends after passing this year’s Federal Reserve stress tests, a hurdle that regulators made easier to clear by softening some of the requirements laid out in previous years.

Goldman Sachs Group Inc. and Morgan Stanley were among firms that raised quarterly payouts after the Fed’s annual review last week, and shares of both banks hovered near record highs Wednesday.