Banks pass Fed’s stress tests results with flying colors
Stocks at session highs as Biden announces infrastructure deal
Fox News contributor Liz Peek and Brandywine Global portfolio manager Jack McIntyre analyze the market’s reaction to an infrastructure deal.
America's largest banks aced the Federal Reserve’s stress tests and are now free to dole out dividends and step up share buybacks which were restricted during the height of COVID-19.
|JPM||JPMORGAN CHASE & CO.||152.56||+1.40||+0.93%|
|WFC||WELLS FARGO & CO.||45.20||+1.28||+2.91%|
|BAC||BANK OF AMERICA CORP.||40.86||+0.68||+1.69%|
Those restrictions will be lifted officially on June 30 after 27 of the nation’s largest banks including JPMorgan, Wells Fargo and Bank of America, now hold more than double the average capital cushion required by the Fed to ensure the stability of the U.S. financial system and the ability to lend to both businesses and consumers.
Bank of America CEO Brian Moynihan is among the chiefs that will start rewarding shareholders who currently sit with a dividend yield of 1.76%
"We expect to increase our dividend and increase our share buybacks because frankly, it’s simple, we’re making good money doing a great job for our customers and a great job for society and, therefore, our shareholders ought to benefit too so that’s what we’ll do," said Bank of America CEO Brian Moynihan on "Mornings with Maria" last month.
Wells Fargo shareholders may also see a boost to their dividend yield of 0.90%.
"It's not lost on us that our dividend is quite low, certainly relative to where we're earning today and as we look forward," said CEO Charles Scharf during the company’s April earnings call. "We would like to increase the dividend to a more reasonable level."