economy
JPMorgan Chase unveils $50 billion buyback, Goldman Sachs raises dividend after Fed stress test
The announcements followed the release of the Federal Reserve's annual stress test, which found that all 32 large banks weathered a hypothetical recession.
TL;DR
- JPMorgan Chase unveiled a $50 billion share repurchase program and a 10% dividend increase to $1.65 per share.
- Goldman Sachs will raise its quarterly dividend by 11% to $5 per share.
- Wells Fargo expects to increase its dividend by 11% to 50 cents per share.
- Morgan Stanley boosted its dividend by 15% to $1.15 per share and reauthorized a $20 billion buyback program.
- The Federal Reserve's annual stress test found all 32 large banks remained above minimum capital requirements, even after a hypothetical recession.
- Unlike previous years, the results of this stress test will not affect banks' capital requirements, which will remain unchanged through 2027.
- Banks are increasing payouts as a sign of confidence despite the regulatory environment.