2017-06-28reuters.com

The Federal Reserve has approved plans from the 34 largest U.S. banks to use extra capital for stock buybacks, dividends and other purposes beyond being a cushion against catastrophe.

On Wednesday, the Fed said those lenders, including household names like JPMorgan Chase & Co and Bank of America Corp, had passed the second, tougher part of its annual stress test. The results showed that many have not only built up adequate capital buffers, but improved risk management procedures as well.

One bank, Capital One Financial Corp, must resubmit its scheme by year-end, though the Fed is still allowing it to go forward with its capital plan in the meantime.

...

The verdict marks a significant victory for the banking industry, which has worked for years to regain its stature. The green light could also serve as a watershed moment for Wall Street, which is eager to get a lighter regulatory touch from policymakers in Washington.

Party on, dudes...



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