The results are out: 15 of the 19 US banks pass Federal Reserve stress test – Part 3
Friday, March 16th, 2012 6:32:07 by Usman Khalid
JPMorgan Chase
One of the too big to fail, passed stress test with 5.4% capital ratio under stressed scenario, including proposed captal actions through 2013. Increased its dividend 20% to 30 cents per share, from 25 cents, authorized a $15 billion stock buyback.
US Bancorp
With a margin US Bancorp passed stress test with 5.4% capital ratio. Hiked dividend 56% to 19.5 cents per quarter, from 12.5 cents, declared dividends on preferred shares and authorized buyback of 100 million shares.
KeyCorp
The bank ran the gauntlet stress test with 5.3% capital ratio. Board will consider dividend increase to 5 cents from 3 cents at May meeting. Approved $344 million buyback.
Morgan Stanley
One of the prestigious holdings institute cleared the stress test with 5.4% capital ratio. Said the Federal Reserve did not object to its capital plan, which includes maintaining dividends on common and preferred stock, and the potential cash acquisition of another 14% of Morgan Stanley Smith Barney to raise its stake in the joint venture with Citi.
MetLife
Despite clearing the 5.1% minimum capital ratio the banks failed to clear the exam, due to measure of risk-weighted capital. CEO Steven Kandarian said company is “deeply disappointed,” and that the Fed’s bank-based methodology is not a proper gauge of the financial strength of an insurer.
Citigroup
Coming as a surprise, the group failed the stress test with 4.9% capital ratio. Fed rejected the firm’s proposal to increase capital return, which the bank plans to resubmit later in 2012, but did not object to it maintaining its dividend at current levels.
SunTrust Banks
Sadly among the niche of four, SunTrust failed to clear the stress test with 4.8% capital ratio.
Ally Financial
Sadly Ally failed stress test with the lowest minimum capital ratio, 2.5%, and fired back at the Fed.
Tags: Ally Financial, American Express, Bank of America, Bank of New York Mellon, BB&T, Capital One Financial, Citi Group, federal reserves, Fifth Third Bancorp, goldman sachs, JPMorgan Chase, Keycorp, MetLife, Morgan Stanley, PNC Financial Services, Regions Financial, State Street, SunTrust Banks, US Bancorp, us economy, wells fargoShort URL: https://www.newspakistan.pk/?p=16040
Posted by Usman Khalid
on Mar 16 2012. Filed under Business.
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