Goldman Says to Get Ready for Big Bank Payouts

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Goldman Says to Get Ready for Big Bank Payouts

(New York)

Big bank investors may get a boost very soon. A number of the largest US banks are currently seeking approval to raise their dividends and undertake share buybacks after passing federally-mandated stress tests. Some banks will return more than 100% of earnings, and this group may include Morgan Stanley and Citigroup, says Goldman Sachs. If they do raise payouts it could take operating capital levels down to the bare minimum, which does appear to be causing some consternation.

FINSUM : We think this would prove a big tailwind for bank stocks, especially if it gets coupled with some rolling back of Dodd-Frank regulations.

  • stocks
  • banks
  • Morgan Stanley
  • citigroup
  • Goldman Sachs

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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