Citigroup, Wells Fargo and Morgan Stanley, as well as several other large lenders, also boosted their dividends. In addition, JPMorgan’s board authorised a US$50 billion share buyback, and Morgan Stanley reauthorised a multi-year share repurchase program of up to US$20 billion, with no expiration date.
Wall Street’s largest lenders boosted their dividends after passing this year’s US Federal Reserve stress tests, a hurdle that regulators made easier to clear by softening some of the requirements laid out in previous years.
JPMorgan Chase & Co., Goldman Sachs Group and Bank of America were among firms that raised quarterly payouts after the Fed’s annual review last week showed that all 22 banks examined would maintain enough capital to withstand a hypothetical economic downturn.
