US bank capital: US banks get mixed dividend decisions

BAML told ‘no’; Citi surprises analysts; Capital requirements might yet increase

In March, US banks received the decision of the Federal Reserve on whether or not they would be able to start increasing dividends. In January the Fed had begun a second round of stress tests at the largest 19 financial institutions to look not only at capital levels but also at internal capital-planning procedures. More than 100 Fed staff reportedly worked on the decision on whether to allow the banks to pay or increase dividends should they want to or buy back stock.

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