Banks Resume Capital Distribution Following Federal Reserve Stress Test Results
2021-06-29 00:00:00
Brendan Fagan,
Bank Dividends, Goldman Sachs, Morgan Stanley, Bank of America - Talking Points
Banks to resume dividend and share buyback programs following the recent stress test results
Morgan Stanley, Goldman Sachs, Bank of America, and JP Morgan to boost dividends, share buybacks
Citi, of note, decided to “continue” its quarterly dividend instead of boosting it along with its peers
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Following the closing bell on Monday, major US financial institutions announced resumptions of dividends and share buybacks following the recent Federal Reserve stress test results. Resumption of these programs was contingent on passing the Fed’s examination, which all institutions under observation did. The Federal Reserve stated that all 23 banks under examination remained “well above” the required capital levels during various hypothetical economic downturns. For more on the stress test results, please click here.