According to Odaily, major American banks announced on Friday that they would be increasing their dividends, following their successful passage through the Federal Reserve's annual stress tests. Banks such as JPMorgan Chase and Bank of America were among those who declared an increase in their dividends. This announcement came just two days after regulatory assessments showed that all 31 banks participating in the tests could maintain sufficient capital to withstand hypothetical economic recession scenarios.
Other banks that announced dividend increases included Citigroup, Wells Fargo, and Morgan Stanley. Both JPMorgan Chase and Morgan Stanley also approved stock buyback plans worth billions of dollars. The Federal Reserve required banks to wait until after the market closed on Friday to disclose updates, allowing each company and its investors time to digest the results. JPMorgan Chase announced it would buy back no more than $30 billion in stock, while Morgan Stanley reauthorized a buyback plan not exceeding $20 billion.