Get Ready for a Bank Stock Bonanza

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(New York)

Banks and their investors got very good news yesterday. The results of the Fed Stress tests came out, and banks have been approved for what looks like a cash-back bonanza. The banks passed the tests with flying colors and the Fed saw no reason to constrain payouts to investors. This means that banks have been cleared for a ~$100 bn cash giveaway in the form of buybacks and dividends. Bank stocks unsurprisingly rallied on the news. JP Morgan, for instance, plans to give out 110% of profits over the next 12 months.

FINSUM : This should be a big boost for bank stocks and their investors and seems to signal an inflection point towards a new era for banks. Are we finally out of "post-Crisis" mode?

  • stocks
  • banks
  • stress tests
  • dividends
  • buybacks

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


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

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