NewsDialy
JPMorgan Chase unveiled a $50 billion share buyback program and Goldman Sachs raised its dividend after the Federal Reserve's annual stress test cleared all 32 large banks it examined.
The test, which measures whether major lenders can survive a severe hypothetical recession, gave the industry a clean bill of health — and banks wasted little time converting that regulatory approval into cash for shareholders.
What the Fed Stress Test Actually Is Every year, the Federal Reserve puts the country's largest banks through a simulated financial crisis.
The exercise is not a suggestion — it determines how much capital a bank must hold in reserve and, by extension, how much it is allowed to send back to investors through buybacks and dividends.
Keep reading