Friday, March 18, 2011

Federal Reserve completes Analysis of 19 Largest Banks, Allows some Dividends

by Calculated Risk on 3/18/2011 11:33:00 AM

Update: Dividend announcements from JPMorgan, Wells Fargo, BB&T, BNY Mellon, US Bancorp. SunTrust announces a buyback.

From the Federal Reserve:

The Federal Reserve on Friday announced it has completed the Comprehensive Capital Analysis and Review (CCAR), its cross-institution study of the capital plans of the 19 largest U.S. bank holding companies.

As a result of the CCAR, some firms are expected to increase or restart dividend payments, buy back shares, or repay government capital. The Federal Reserve on Friday will discuss the reviews and its decisions with firms that requested a capital action. All 19 firms will receive more detailed assessments of their capital planning processes next month.
The Fed is not releasing details of these stress tests, and they will notify the 19 banks if they can start paying dividends (expect announcement pretty soon).