Shareholders score as robust US banks get clean bill of health from Fed
New York — The Federal Reserve told big banks they have more than enough capital, then promptly announced a windfall for their shareholders. JPMorgan Chase, Citigroup and Bank of America led US firms in unveiling plans to boost dividends and stock buy-backs by more than analysts had projected, after every lender passed annual stress tests for the first time since the Fed began the reviews in the wake of the 2008 financial crisis. Shares across the industry rallied in late trading. Still, Capital One Financial Corporation slipped more than 2% after it was the lone bank to stumble through the exam on Wednesday, garnering conditional approval to make pay-outs while it fixes "material weaknesses" in planning. Lofty pay-outs once made banks hot stocks before the financial crisis exposed many of them as too thinly capitalised. The companies’ plans unveiled on Wednesday show how they’re trying to generate investor interest — even as many still struggle to meet profitability targets and a f...
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