American banks announce the large number of shareholders, as the federal reserve reduces stress tests

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Investors earned the improvised bank supervision, as the largest banks in Wall Street announced a flood of shareholders on Tuesday after passing the organizational “tension tests” that imposed easier conditions than past years.

JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley and others said they will increase the quarterly profits payments for shareholders, JPMorgan and Morgan Stanley also said they will buy billions of dollars from them. Shares.

Goldman said it would raise its profits by 33 percent to 4 dollars per share. JPMorgan said it would increase the quarterly equilibrium profits to $ 1.50 per share in the next quarter, up from $ 1.40 per share. Bank of America said it would raise the quarterly stock profits to $ 0.28 per share, starting from the same quarter.

JPMorgan also said it would allow to buy up to $ 50 billion in its own shares.

The highest payments reflect what analysts and investors view as a less well -known organizational environment Banks After more than a decade of narrow restrictions in the wake of the 2008 financial crisis.

Banking stock prices did not change slightly after the ads on Tuesday, but they have seized gains in recent days, as investors have absorbed news of the requirements of stress test.

The Federal Reserve confirmed last week that 22 banks – ranging from the largest banks such as JPMorgan and Goldman Sachs for smaller players, including PNC and BNY – have succeeded in conducting annual tests to assess the flexibility of potential economic and market crises.

Banks use the results to calculate the minimum level of capital they need in relation to their modified assets according to the risks-which in turn can affect the amount of excessive capital they return to shareholders. Capital is used by banks to accommodate losses.

The stress tests for this year were the first since the Federal Reserve reduced its scenario with less intense recession than it was in the previous year. While the new test is designed for US President Donald Trump, he is in line with the most flexible banking regulations that his administration has defended.

Mourgan Stanley analysts said that the results of the Federal Reserve “are better than expected” because they have distinguished the changes that led to a decrease in virtual losses, including changes in the way the regulator measures exposure to private shares.

“A new era to organize banks here,” Morgan Stanley analysts wrote in a note earlier this week.

The Federal Reserve said that this year’s tests will pay the total capital rate for banks, its main pillow against losses, a decrease of 1.8 percentage-much less than a 2.8 percent drop in exercise last year.

The Federal Reserve is scheduled to provide clear in the coming weeks about whether it will start using the results of stress tests for the past two years to calculate the capital requirements for banks, a step that the Vice President said to supervise that Michelle Bowman will help reduce volatility in the results.

As part of a wider batch to reduce the banking organization, the Federal Reserve and two other monitoring announced last week plans to reduce the improved supplementary lifting rate, which determines the amount of capital that the largest banks need against their total assets.