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JPMorgan unveils $50B buyback, Goldman Sachs raises dividend after Fed stress test
CNBC • • business
Key Points:
- JPMorgan Chase announced a $50 billion share repurchase program and a 10% increase in its quarterly dividend to $1.65 per share, following the Federal Reserve's stress test confirming strong industry capitalization.
- Other major banks also raised dividends: Goldman Sachs by 11% to $5 per share, Wells Fargo by 11% to 50 cents per share, and Morgan Stanley by 15% to $1.15 per share, with Morgan Stanley also reauthorizing a $20 billion buyback program.
- The Federal Reserve's annual stress test showed all 32 large banks exceeded minimum capital requirements despite a hypothetical severe recession scenario causing $708 billion in projected losses.
- This year's stress test results will not affect banks' capital requirements, as the Fed has paused changes to stress capital buffers through 2027 while revising testing methodologies.
- Analysts view the current stress test as less impactful, with investor focus shifting toward the upcoming Basel III Endgame proposal expected later this year.
