Federal Reserve Clears 32 Major Banks in Stress Test as JPMorgan Raises Dividend
The Federal Reserve cleared 32 of the largest U.S. banks to pass its annual stress test, confirming that the banking sector can absorb $708 billion in losses during a severe recession. The results clear the way for increased shareholder payouts as banks finalize their capital allocation plans under newly overhauled capital rules.
JPMorgan Chase outlined one of the most aggressive capital return strategies among the designated systemically important financial institutions. The bank plans to raise its quarterly dividend to $1.65 per share from $1.50, starting in the third quarter of 2026, subject to board approval. JPMorgan also authorized a new $50 billion share repurchase program effective July 1. Its stress capital buffer will remain at 2.5% through September 2027, with its standardized CET1 capital ratio requirement held at 11.5%, according to Wall Street Engine.
From the sources (4 posts)
@zerohedge*BANKS PASS FED STRESS TEST, PAVING WAY FOR SHAREHOLDER PAYOUTS
@financialjuiceThe Fed: 32 large banks are well-positioned to weather a severe recession and continue lending under the latest stress test - Statement
@cnbcFederal Reserve says U.S. banks can withstand $708 billion in losses amid overhaul of capital rules
@wallstengine$JPM plans to raise its quarterly dividend to $1.65/share from $1.50 starting in Q3 2026, pending final board approval. JPMorgan also authorized a new $50B share repurchase program, effective July 1. The bank said its Stress Capital Buffe